After incorporating the revisions to the historical GDP figures, America's recent productivity performance looks even worse. The stagnation in productivity isn't going to have any major impact on Fed policy in the short-term but, if it continues, then Fed officials might consider revising down their forecasts of how fast the US economy can grow before inflation begins to become a problem.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.