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The US growth outlook remains robust thanks to elevated business and consumer confidence, as well as a supportive global environment. However, tightening labor markets have sparked concerns about higher inflation rates triggering more aggressive action by the Federal Reserve. As a result, equity markets fell after more than a year of steady growth. The market correction could lead the US economy to a more sustainable growth path, but stock prices may also signal that supply constraints could lead to a slower and more volatile growth environment.