A summary of the most interesting article on small businesses published in the previous 24 hours including cautious optimism.

A key article from the U.S. Chamber of Commerce highlights a mood of cautious optimism among small business owners, even as concerns about tariffs and hiring linger. The report, which includes data from a recent survey, indicates that a majority of small business owners are optimistic about their future and plan to grow their businesses. However, this optimism is tempered by significant concerns.

Here are some key takeaways:

• Tariffs: Tariffs are a major concern for many small businesses, with 36% currently feeling their impact and 38% expecting to be negatively affected.
• Hiring: While 45% of small businesses plan to increase their workforce, this is slightly lower than a previous survey, suggesting some hesitation.
• Financing: A majority of small business owners (51%) believe that interest rates are too high to afford a loan.
• Government Policy: Small business owners feel they are not a priority in Washington, D.C., with 81% expressing this sentiment. There is a strong desire for more tax certainty and for provisions like R&D expensing to be made permanent.

In essence, small businesses are feeling good about their own prospects but are worried about external economic factors and a lack of support from policymakers.

Contact Factoring Specialist, Chris Lehnes

The phrase “cautiously optimistic” has been a staple of American economic commentary for decades, a linguistic barometer for a nation grappling with a complex and ever-shifting fiscal landscape. Far from being a simple platitude, this seemingly oxymoronic expression is a deliberate rhetorical tool used to convey a delicate balance of hope and pragmatism. It signifies a period of positive momentum that is nonetheless shadowed by lingering risks, demanding vigilance from policymakers, investors, and the public alike. To trace the history of this phrase is to chart the major inflection points of the US economy, from the post-war booms to the digital age, and to understand how a single turn of phrase can both reflect and shape public perception.

The origins of this economic cliché can be traced back to the early 20th century, a time when economic analysis was becoming a more formalized discipline. As far back as 1924, business statistician Roger W. Babson, a pioneering figure in investment advisory, used similar language to describe the economic outlook. In an article highlighted by the NKyTribune, Babson predicted 1924 would be a “fairly good” business period but cautioned against the dangers of excessive prosperity. His philosophy was rooted in a Newtonian “action and reaction” theory of economic cycles, which held that every boom would inevitably lead to a bust. Babson’s “cautious optimism” was not a gut feeling but a statistical conclusion, born from a scientific understanding of historical economic data. He saw the need for moderation, a middle ground between the “hot weather” of a boom and the “depression” of a bust. This early use of the phrase set the precedent for its future application: a measured, data-driven assessment that acknowledged positive signs while remaining acutely aware of inherent cyclical risks.

This delicate balancing act became particularly prominent in the latter half of the 20th century, especially within the hallowed halls of the Federal Reserve. The role of the Fed is, by its very nature, to be “cautiously optimistic.” The central bank must stimulate growth without triggering inflation and curb overheating without causing a recession—a pursuit often referred to as engineering a “soft landing.” This difficult objective naturally lends itself to the language of guarded hope.

One of the most frequent uses of “cautiously optimistic” came during periods of economic recovery following a downturn. In the aftermath of the 2008 financial crisis, for example, the phrase became a recurring theme in speeches by policymakers. In a May 2009 address, Christina Romer, the Chair of President Barack Obama’s Council of Economic Advisers, presented a “cautiously optimistic” picture of the US recovery. She cited the potential for “pent-up demand” and “the natural forces of inventory rebound” to drive growth, but she was careful to emphasize the need for a “sound regulatory framework” to prevent the formation of new asset bubbles. Her use of the term was a clear attempt to instill confidence in a shaken public without creating a false sense of security. It was a message that acknowledged the deep wounds of the recession while signaling that the patient was on the mend, albeit slowly and with a need for ongoing care.

Similarly, in 2015, as the US economy continued its long, slow march out of the Great Recession, then-Federal Reserve Chair Janet Yellen used the term to describe her outlook on the labor market. Speaking at a conference, Yellen expressed her “cautious optimism that, in the context of moderate growth in aggregate output and spending, labor market conditions are likely to improve further in coming months.” Her words were a signal that the Fed was seeing progress but wasn’t yet ready to declare victory. The “cautious” part of the optimism was a nod to the fact that the recovery was still fragile and the risks of a premature policy shift, such as raising interest rates too quickly, could derail the progress made.

The phrase has also been deployed in times of transition or uncertainty. The early 2000s, following the burst of the dot-com bubble and the September 11th attacks, was another period ripe for “cautious optimism.” Federal Reserve officials, such as Vice Chairman Roger Ferguson, used the term in their speeches to describe a business sector undergoing a “serious retrenchment” in spending and production. They noted that while a recovery was possible, a confluence of factors—including a stronger dollar, falling equity prices, and tighter lending standards—created a self-reinforcing downturn. The optimism was rooted in the long-term fundamentals of the American economy, such as technological innovation, but the caution was a sober acknowledgment of the immediate headwinds. The phrase allowed policymakers to communicate a belief in the eventual triumph of American ingenuity while simultaneously justifying a policy of continued vigilance and support.

This historical pattern reveals the phrase’s utility as a communication device. It is often used when a clear, simple narrative is impossible or misleading. If an economic situation were unambiguously good, the word “optimistic” would suffice. If it were unambiguously bad, “pessimistic” would be the clear choice. “Cautiously optimistic” occupies the gray area in between, a place where the signs are mixed and the path forward is uncertain. It is a phrase that allows a speaker to acknowledge both the “good news” and the “bad news” in a single breath, preserving their credibility and managing public expectations.

In recent years, the phrase has continued to evolve. With the rise of global trade tensions and the increasing complexity of the financial system, “cautious optimism” is no longer just about the domestic business cycle. It’s now applied to an environment of “policy uncertainty,” where factors like trade tariffs, international relations, and geopolitical shocks loom large. A 2025 report from Neuberger Berman, an investment management firm, used the phrase to describe the outlook “amid policy uncertainty.” The authors were “cautiously optimistic” due to resilient economic fundamentals but worried about “tariff-related volatility” and the potential for a “shift in capital flows.” Here, the caution is not just about the economy’s internal dynamics, but also about the external forces and policy decisions that could destabilize it.

In essence, “cautiously optimistic” has become a shorthand for “things are getting better, but don’t get complacent.” It is a phrase that embodies the very nature of economic forecasting: an attempt to project a future that is inherently unknowable, based on an imperfect understanding of the present. It has been used by economists, policymakers, and journalists to navigate recessions, bubbles, and periods of geopolitical flux. It is the language of a slow and steady recovery, of a fragile but improving situation, and of a future that is full of promise, but also potential pitfalls. Through its consistent use, “cautiously optimistic” has become more than just a phrase; it is a historical record of America’s enduring, yet always measured, faith in its economic future.