According to Treasury Secretary Jack Lew, speaking at Davos, the US economy is off to a good start in 2014 and may break 3% growth, a rate not seen since 2005.
"We have a good first quarter underway, I believe," Lew said at the World Economic Forum in Davos, Switzerland.
Lew was reluctant to make a specific prediction about the rate of expansion this year, but said there were reasons to believe growth in the world's biggest economy would "break through 3%."
He believes that, freed from last year's drag of tax rises and spending cuts, and with business confidence strong, the economy should accelerate sharply from last year.
"I really think there is every reason to be hopeful that we will do well this year," Lew said.
In its latest forecast Tuesday, the International Monetary Fund upgraded its projection for U.S. economic growth in 2014 to 2.8% from 2.6%, citing stronger domestic demand and the boost from smaller spending cuts as a result of the recent budget deal.
