Market news
27.11.2018, 14:56

Clarida: Inflation Appears Restrained Considering Strength of Economy, Labor Markets

  • Gain in Workforce Productivity and Hours Worked Could Explain Strong Growth With Modest Inflation

  • While Demand Is Exceeding Long-Term Expected Growth Rate, It Is Not Currently Exceeding Growth in Supply

  • Recent Developments Indicate Potential to Increase Labor-Force Participation

  • Productivity Growth Rebound Is Hard to Forecast, but Cyclical and Structural Forces Likely Are at Work

  • Recent Weakness in Business Investment Bears Attention if Productivity Gains Will Be Sustainable

  • Robust Labor Market and Inflation at Target Requires Careful Reading of Incoming Economic Data

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