The US Economy Is Great. Stop Worrying About It.

Is it possible for economic news to be a little too good? If many economic worries seem to be dwindling, is that reason to be scared? After periods of success, are economies due for a comeuppance — perhaps even for reasons stemming from their earlier achievements?

What prompts these questions is the current US economy. The good news is evident: Its 2.4% growth rate last quarter exceeded expectations, inflation has fallen to the 3% range, wage gains are finally exceeding price hikes, stock prices have rebounded, measures of volatility have been low, and consumer sentiment is improving.

To be sure, matters are hardly perfect. The number of job openings has been falling, banks still have problems with non-performing commercial loans, and inflation is still too high, among other problems. Nonetheless, especially considering what could have happened after a pandemic that killed well over 1 million Americans, the US economy seems unreal, in the best sense of that term.