A surge in business investment is reshaping the U.S. economic landscape.

The latest data from the Federal Reserve shows a stunning uptick in capital expenditures,

one that rivals the heights of the late 90s tech boom.

In this episode, we speak to Joe LaVorne, counselor to the Treasury Secretary,

to help us unpack what this investment means for the economy.

I'm Georgia Howe with Daily Wire Executive Editor John Bickley. It's Sunday, July 27th, and this is Morning Wire.

The following is an interview between Joe LaVorna, counselor to the Treasury Secretary and senior editor Cabot Phillips.

Hey, Joe, thanks again for coming on.

Always a pleasure to have you.

Yeah, sure. Thanks for having me.

So I want to talk to you about some new numbers coming from the Federal Reserve,

showing a significant increase in the U.S. production of business equipment.

Now, give us some context on why that is a good sign for the economy

and what this means for average Americans.

The Federal Reserve provides industrial production figures every month, and one of the details

is often overlooked in the market, and that is production of business equipment.

That series is an excellent proxy for what economists call CAPACs or capital spending, which essentially measures all the things that firms invest in to help produce more of the goods and services that people want.

It could be computers, software, things of that sort.

And what we observed in the first quarter is that equipment production rose at a 23% rate.

Not surprisingly, when we got the GDP data, we saw a 24% increase.

Really, really strong, really exciting news. We think that is a result of the one big, beautiful

bill, which had retroactive expensing to inauguration day. So companies getting very excited about

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