There are two reasons that seems to suggest that bolstering US infrastructure is a no-brainer: first, investment in infrastructure can improve productive capacity and America's economic growth rate and second, infrastructure will put people to work with the tightening of labor markets putting pressure on stagnant wages. However these obvious reasons are all offset by one factor, the Federal Reserve.
University of Rochester professor and former President of the Federal Reserve Bank of Minneapolis Narayana Kocherlakota explains how the response of the Federal Reserve, affects the decision to spend on infrastructure now:
"Suppose, for example, the government increased infrastructure spending greatly," wrote Kocherlakota. "If the Fed were to raise interest rates, it would constrain the growth of household consumption and business investment. By tightening sufficiently, the Fed could essentially eliminate the effects of any stimulus program on aggregate output."