Why the US economy keeps defying the odds

The article argues that the US economy continues to outperform peers despite tariffs, immigration disruptions, and higher energy prices. It highlights strong capital expenditure, productivity gains, and America’s shale-driven energy independence as key buffers against external shocks. US businesses have adapted to tariffs by investing more rather than absorbing lower margins, while the flexible, market-based financing system supports faster adjustment than Europe’s bank-loan model. However, the piece warns that resilience is not immunity: inflation has reaccelerated, with May consumer prices up 4.2% year over year, and inequality remains a structural risk. Overall, the market takeaway is that US growth remains relatively robust, but persistent inflation and energy pressures could eventually strain equities and broader risk assets if they continue to build.