RSM's prescient forecast for today's strong economy

REAL ECONOMY BLOG | April 03, 2024

Authored by RSM US LLP

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, RSM Chief Economist Joseph Brusuelas and Neil Bradley, executive vice president the U.S. Chamber of Commerce, discussed what is driving this growth. It’s a scenario that Brusuelas, unlike others, has been forecasting for some time:

“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.”

Watch the entire conversation.