The US economy is undergoing a significant transformation from a prolonged period of low growth and low interest rates into an era defined by higher growth, inflation, and geopolitical challenges.
Economists suggest that the previous 'supercycle' limited growth due to deflation risks and led to zero interest rates, resulting in risky behaviors from businesses and investors.
The previous low-rate environment allowed businesses to excessively expand and hire, but ultimately failed to stimulate adequate demand, capping GDP growth below 3%.
The pandemic-related government stimulus was a turning point, allowing the economy to finally escape the stagnation experienced during the preceding 15 years.
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