Economy Statement for the Treasury Borrowing Advisory Committee

IntroductionThe economy under the Trump Administration is strong, supported by robust business investment in equipment and intellectual property products, as well as solid household consumption growth. Data on investments, sales, and earnings indicate that the economy is poised for continued expansion. Business investment rose by nearly 10% at an annual rate over the first half of 2026, driven by investments in new equipment and intellectual property.On the labor side, employment growth accelerated in the second quarter, with 334,000 net new jobs added. Annual worker wage growth continues to outpace inflation, and the unemployment rate remains low.Despite recent increases in volatility of prices linked to the Iran conflict, the U.S. economy is increasingly resilient to fluctuations in availability of oil supply from the Strait of Hormuz.