On top of that, households with access to the stock and housing markets saw big gains in 2013, bolstering their net worth.
Those factors combined are likely to increase Americans' desire to spend, especially on big-ticket items like cars, the report noted.
Washington is less of a liability: The rabid fiscal fights of the past few years are over, for now anyway. And the fiscal consolidation that resulted from the agreements reached over debt ceiling standoffs and the fiscal cliff isn't likely to be as much of a slowdown going forward.
"Federal fiscal policy will be much less of a drag in 2014 and thus will likely constrain overall growth by less than during the preceding years," the report said.
Bull market: Gotta be in it to win it
Steady housing demand: So-called household formation took a dive during the Great Recession, so there is likely to be pent-up demand for housing going forward.
What's more, the report asserted, "as employment prospects improve, household formation is likely to pick up."
Household formation can result from adults being financially able to move out of their parents' house or ditch the roommates, to new college graduates who get jobs and don't move back home.
The White House did caution, however, that "stronger housing demand depends critically on the easing of credit standards (that may have been overtightened following the financial crisis)."