The resilient American economy
The American economy this year has been a story of strength and resilience that would have been hard to imagine a year ago. Easing inflation, a robust labor market and surging productivity are all fueling growth that is expected to continue throughout the year.
In a recent wide-ranging conversation about the state of the economy and the middle market, Joe Brusuelas, chief economist at RSM US, and Neil Bradley, executive vice president of the U.S. Chamber of Commerce, touched on these themes and offered insight over what is driving this growth. One reason, Brusuelas said, is that the investments in productivity made during the pandemic are now starting to pay off.
“There is a lot that is right in the U.S. economy right now,” said Brusuelas, who said he sees the Federal Reserve cutting interest three times this year, starting in June.
Bradley echoed the optimism, and pointed out that there is a disconnect between what is being reported about the state of the economy and what businesses are experiencing. The correct story, Bradley said, is one of strength.
There are risks, they noted. Rising oil prices, geopolitical tensions and volatility surrounding elections could dampen the growth. But until then, the economy will remain robust.
Any advice for businesses? Brusuelas urged firms to continue to make productivity-enhancing investments, and Bradley offered an exhortation: “Charge ahead and don’t act out of fear.”
