Time needed at Madrid airport for connection to the USA

Time of year? Is it booked on the same ticket or separately?
My last transit through MAD in May was quite stressful because there was only one line open for hundreds of people, but two hours should be sufficient provided it is booked on one ticket so the airline is responsible for getting you home in the event the first flight is delayed.

Also depends what Terminal. I believe T4 was the farthest in the airport and seemed like it took forever to get to the gate.

Is it booked on the same ticket or separately?

This is the crucial issue.

If the former you should be fine, but if your first flight is late and you miss the connection, the airline has the burden to get you to your destination.

If the latter you are on thin ice and bear the financial burden for a missed connection. If you have checked bags, you are almost certainly doomed.

Are both flights on Iberia? If so, 2 hours is doable, but you have to walk fast.
If the flights arrive at and depart from different terminals, then it's impossible.

To add some detail- Iberia and American both operate out of Terminal 4, and they’re code-share partners. I’ve flown through there a lot. While they refer to T4 and T4S as separate terminals, they’re really separate concourses of the same terminal. Two hours there is plenty—I’d make my way promptly to T4S and get through passport control, after which you can relax a bit with remaining time.

Terminals 1-2-3 would likely be a TAP/United or a AirEuropa/Delta connection. I don’t know that building at all, but understand two hours there should be fine.