Despite global instability and persistent affordability challenges, the U.S. economy remains relatively stable, but growth has slowed, according to Rutgers Bloustein School Distinguished Professor and Director of the Heldrich Center for Workforce Development Carl Van Horn. Speaking with NJ Spotlight News, Van Horn said the nation is “stuck in a rut,” with slower-than-expected GDP growth, modest increases in unemployment, and inflation remaining relatively steady. While the economy has avoided a more severe downturn, he cautioned that continued uncertainty could limit job growth and economic opportunities in the months ahead.
Van Horn noted that many Americans are feeling the effects of rising gasoline, energy, and grocery prices, even if broad economic indicators appear stable. Higher fuel costs ripple throughout the economy by increasing transportation and delivery expenses, contributing to higher prices for goods and services. Although consumer spending has remained relatively resilient, he said households have begun cutting back on discretionary expenses such as travel and vacations. He also discussed the Federal Reserve’s recent decision to hold interest rates steady, calling it a reasonable response to current uncertainty while noting that additional rate increases may be needed if inflation remains elevated.
Looking at New Jersey, Van Horn said the state’s economy largely mirrors national trends, with similar employment and inflation patterns. While state leaders can pursue policies that improve affordability, streamline permitting, and support business growth, he emphasized that New Jersey’s economy is heavily influenced by national and global events beyond its control. He added that even if geopolitical conflicts ease, energy markets and supply chains will take time to recover, meaning economic improvement is likely to be gradual rather than immediate.
NJ Spotlight News, August 3, 2026