Janet Yellen cites three factors for why the Fed's growth estimates may be too high: demographics, education and productivity.
earlier this month. An expansion of 1.9% is lackluster compared to growth rates of previous decades when the economy consistently expanded by at least 3%.
But Yellen thinks the Fed may be overestimating the strength of the U.S. economy with its forecast. "It's actually an optimistic projection," she said, citing three factors: demographics, education and productivity. On demographics, Yellen noted that labor-force growth is approximately a meager 0.5% as population growth has slowed down in recent years. She added that, in the 1980s, labor-force growth got a boost from "an influx of women" joining the force.
"Another reason the 1.9% number is not very high has to do with education. Improvements in average educational attainment of the labor force also boost economic growth," said Yellen, who was Fed chair between 2014 and 2018. "That's continuing to rise, but it's not rising … as rapidly as it used to." Yellen also said productivity has remained stubbornly low for years. U.S. labor-force productivity has grown by more than 2% in just four quarters since the start of 2015,
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Harker says Fed should 'hold firm' on interest rates'My own view is that we should hold firm, letting things settle and watching how events play out,' he said in prepared remarks Friday.
Leer más »
Big Banks Loom Over Fed Repo EffortsAs the Fed increases lending in the repo market, it is reliant on a small group of bond dealers to recirculate that money, increasing opportunities for market channels to get clogged
Leer más »
Predicting The Unpredictable: Israeli Elections, Fed Policy, U.S.-China Trade War, And BrexitForward-looking updates from GeoQuant's high-frequency political risk intelligence platform.
Leer más »
Fed's Quarles says economy is 'solid' despite uncertainty around US trade policyThe U.S. economy is doing well even as worries over the country's trade policy are hurting business investment, a top Fed official says.
Leer más »
Dallas Fed's Kaplan says global economy 'fragile' but U.S. will 'skate through'The world economy is going through a 'fragile' period, but odds of a U...
Leer más »
'RHBH' Star Teddi Mellencamp Shares Topless Photo Showing Off Stretch Marks, Baby Bump'I am loving the skin I am in.'
Leer más »