Mid-morning Clownspeak:
<<WASHINGTON, Sept 18 (Reuters) - Surging U.S. productivity growth, a key driver of the U.S. economy's impressive performance, shows no signs of slowing down, Dallas Federal Reserve President McTeer said on Monday.
And tight labour markets have provided an important incentive for businesses to invest in labour-saving equipment that in turn has driven this productivity growth, McTeer said in a speech to the American Bankers Association.
"Over the past four quarters, productivity grew 5.2 percent. At this point, there are no signs the acceleration has stopped," he said.
"I will say that if we create too much slack in the labour market, the incentive for labour-saving investments will diminish, which would reinforce the negative impact on productivity that would result from a significantly slowing economy," McTeer said.
The Dallas Fed president, who currently does not have a vote on the Fed's policy-setting committee, said that Fed Chairman Alan Greenspan has demonstrated wisdom in recognising that productivity growth allows for faster economic growth without stoking inflationary pressures, which in turn allows him to resist pressures to tighten interest rates.>>
"Too much slack in the labour market...?" WTF, it sounds like he's prepping to CUT rates. |
