WASHINGTON, Sept. 19, 2025 — The US economy stands at a crossroads to establish fiscal prudence and introduce reform measures for small industry owners to help them gain long-term investment benefits.

The naysayers might see the economic policy measures as fiscal self-flagellation, but in America’s optimistic smaller business circles, there is a constant hope that government measures for encouraging manufacturing in the US will boost the local economy.

With certain measures pressed in by the President Trump-led government to deal with the high deficit, corporate America has till now treaded the path of cautious optimism.

Many industrial unit holders believe that the way government had to bite the bullet on tariffs and subsequent trade wars is a policy stand that could yield long-term benefits.

However, in a public speech, renowned economist Jeffrey Sachs recently said that high trade deficits, which are bothering President Donald Trump, are not because of trade policies like low tariffs.

“The reason for high deficit essentially means that Americans like to buy beyond their productive or earning capacity. This resembles a scenario where a shopper is going on a buying binge with a credit card. America’s production, earning, investing, saving and buying activities are captured by a basic equation called identity in the macroeconomics textbook,” said Jeffrey.

“The equation reveals that the trade deficit is equal to the savings-investment imbalance. In simpler terms, the excess of imports over export earnings of America is just the mirror image of the excess of investment over domestic savings,” he said.

How Do SMEs View Macro Economy

OBBA Pros and Cons: While the possible Fed rate cut is a move being watched closely by small business holders, there is firm belief that the American economy being put under stress test will emerge victorious.

The One Big, Beautiful Bill Act, or OBBBA, a measure of fiscal expansion, has been cited to be ‘structurally regressive,’ projected to increase federal deficits by $3.4 trillion over a decade. The bill, which is a massive fiscal stimulus, benefits the top 1 per cent of U.S. households, while the combined policy effect of the bill and tariffs is projected to cause a net income decrease for the bottom 99 per cent of Americans.

SME Incentives and Intel Stake: Amid drawing plans of careful spending, the President Trump-led administration has showed its intentions to open up government coffers for incentivizing manufacturers who produce in America.

There is an ongoing debate as to how much cash flow the government treasuries could manage in order to accommodate incentives and business subsidies.

US President Donald Trump’s administration negotiated an $8.9 billion investment in Intel common stock in August, purchasing 433.3 million shares at $20.47 per share.

Press secretary Karoline Leavitt celebrated the surge with a post on X from the Association of Mature American Citizens, a conservative organization.

The focus of the U.S. government on picking up strategic stakes in tech giants is being touted as a historic investment.

‘President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security,’ Intel CEO Lip Bu-Tan said in a release.

The equity stake is being funded by grants previously awarded to Intel under former President Joe Biden’s U.S. CHIPS and Science Act, according to a company release.

Intel has already received $2.2 billion from CHIPS grants and is set to receive another $5.7 billion. An additional $3.2 billion from a separate government program will also be awarded.

Fed Rate Cut: The expectations of a Fed rate cut have kept monetary policy watchers on tenterhooks. Key lending rates at this point in time are important indicators for the US economy.

Notably, U.S. Treasury yields were higher on Friday despite the latest services data missing Wall Street’s expectations.

The 10-year Treasury yield was up more than 2 basis points at 4.119 per cent, as was the 2-year Treasury yield at 3.574 per cent. The 30-year bond yield also rose less than 2 basis points to 4.711 per cent. One basis point equals 0.01 per cent, and yields and prices move in opposite directions.

Response to the Unpublished Jobs Report

“After the federal government did not publish last week’s closely watched jobs report, Erica Groshen, who served as BLS commissioner during the Obama administration, told The Guardian: “Without today’s jobs report and next week’s scheduled inflation release (the data for which are already collected), the Federal Reserve, US Treasury, financial markets, businesses and households will be flying blind.”

“They will be less certain of current conditions at what may or may not be the beginning of a recession – precisely when their decisions are most consequential.”

Last week, William Beach, who led the BLS for four years under Trump and Joe Biden, also told The Guardian that the jobs data for September “have been completely collected and processed” by the BLS. “The jobs report is likely written in final draft,” he wrote.

According to a private jobs report from the payroll processing company ADP, US firms lost 32,000 jobs in the month of September, contrary to expectations from Wall Street of job growth of 45,000 for the month. ADP also revised its August job numbers from a growth of 54,000 jobs to a loss of 3,000 jobs.