Growth is taking place in the American economy, with a healthy 2.4 rate over the first three months of 2017.

That's also expected to continue, said University of Michigan researchers.

However, they note that it's not meeting expectations set by President Donald Trump.

"(The growth rate is) still well short of the 4 percent he promised as a candidate and under the 3 percent his first federal budget proposal assumed," economists said November 16 during the The University of Michigan's 65th Annual Economic Outlook Conference.

"The Trump Administration has yet to leave a lasting mark on the fiscal landscape," U-M economist Daniil Manaenkov said in the report.

The national economic forecast has been released by U-M economists annually since 1952. This year's report was prepared by Manaenkov, Aditi Thapar and Owen Nie.

The researchers now look to Trump's tax reform plan for what kind of mark that will leave on the economy, notably federal spending.

The U-M forecast assumes $150 billion in corporate and personal tax cuts annually, which will expand the deficit, they said.

"The much-hyped tax reform being debated has the potential to reshape the nation's tax code in a substantial way for the first time since 1986," Manaenkov said. "We believe that federal deficits are going up, but by how much?"

Beyond the deficit, growth is forecast to continue. The U-M economists are projecting that overall economic output growth, as measured by real Gross Domestic Product, will rise from an average of 1.5 percent last year to 2.2 percent during 2017. The first quarter was a tepid 1.2 percent, followed by an annualized rate of around 3 percent in the second and third quarters this year.

Then growth goes to 2.5 percent in 2018 and 2.1 percent in 2019.

They also see job growth, forecasting 3.7 million new jobs over the next two years--2 million jobs in 2018 and another 1.7 million during 2019.

However, that job growth won't be accompanied by significant wage growth, economists said.

"The record-breaking continuous streak of monthly payroll job gains now stands at 84 months," they wrote. "And yet, the 12-month growth rate of average private hourly earnings seems to have gotten stuck below 2.8 percent."