US economy must look to business investment to power economy
The United States (US) economy will have to look to business and residential investment and not household consumption as the driver of future growth, according to the Blackrock Investment Management managing director and co-head of fixed income, Peter Fisher.
Speaking at a Blackrock Investment lunch on US economic prospects, Fisher said the economy is still suffering from the shock of the consumption collapse, and the continuing instability of the economy, including rising unemployment, would keep income growth down, causing a lack of consumption.
However, there would need to be “pretty powerful” business and residential investment to power the economy above current growth trends, and while that could still happen, it wasn’t likely to occur, Fisher said.
The economy was also likely to return to the more volatile 1970-1980s model, shrinking and expanding every couple of years. There wouldn’t be a recession every year, but they would go back to something “a lot choppier”, he said.
Recommended for you
While M&A has ramped up nationwide, three advice heads have explored Western Australia’s emergence as a region of interest among medium-sized firms vying for growth opportunities in an increasingly competitive market.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
