US businesses are currently enjoying the strongest business environment since the mid-2000s, with the newly passed tax laws adding additional upside to rosy conditions for both consumption and investment. With the Federal Reserve having promised to raise interest rates at a modest pace, borrowing costs should not rise too much for firms in the near term unless inflation picks up. As a result, the growth effects of the tax measures will only be mildly reduced, though continued tightening of the labor market may lead to additional headwinds.