Straining at the seams

Article Abstract:

The US economy has achieved low inflation and strong economic growth, but is under pressure due to a tight labor market which appears to be leading to higher wage costs. Consumer and producer prices do not show evidence of inflation, but interest rates may be raised. Interest rates take effect after a time lag, so decisions to raise rates are linked to forecasts for future inflation. Firmer commodity prices, higher petroleum prices, and a drop in the value of the US dollar may also lead to inflationary pressure. There are uncertainties related to the stock market, and how it will react to higher interest rates.

Prices, United States, Inflation (Finance), Inflation (Economics)

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A spanner in the productivity miracle

Article Abstract:

Revised figures on US productivity show that the US 'new economy' is not as strong as many believe. Productivity growth for the five years to 2000 has been cut to 2.5%, and even this has been exaggerated by several factors.

Analysis, Statistics, Industrial productivity

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Subjects list: United States economic conditions
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