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Productivity Growth

All articles tagged with #productivity growth

economy1 year ago•2 min saved

Kashkari: Robust Economy May Limit Rate Cuts

Federal Reserve Bank of Minneapolis President Neel Kashkari suggested that a stronger US economy and higher productivity growth might lead to fewer interest rate cuts than previously anticipated. Despite recent rate reductions, Kashkari emphasized the need to assess the impact of potential policies from the Trump administration and Congress on inflation before making further decisions. The Fed recently cut the benchmark rate to 4.5%-4.75%, but traders now expect fewer cuts due to robust economic growth and rising productivity.

via Yahoo Finance|

#economy #federal-reserve #interest-rates

financeeconomy1 year ago•3 min saved

"Nvidia's Financial Forecast: Riding the Wave of AI Chip Market Shifts"

UBS's head of asset allocation in the US suggests that Nvidia's recent earnings beat and the surge in AI-related spending could usher in a new Roaring '20s economic boom, driven by higher productivity without sparking inflation. The combination of tight labor market, increased capital expenditure, and AI supports a continued surge in productivity, potentially leading to structurally higher trend growth. Market expectations are shifting towards a Roaring '20s outcome, with Nvidia's earnings affirming the momentum in generative AI and raising the likelihood for multi-year, above-trend growth.

via Markets Insider|

#ai #economic-outlook #financeeconomy

economics1 year ago•3 min saved

"Unleashing Productivity: The Key to Sustaining Economic Growth"

The US is experiencing a historic economic event as inflation returns to normal without a recession, possibly due to a surge in productivity growth. Last year's strong productivity allowed for wage gains without significant consumer cost increases, contributing to a robust economy without stoking inflation. The reasons for this productivity growth include the potential impact of generative artificial intelligence, companies becoming more efficient in anticipation of a recession, and cost-saving measures. Federal Reserve officials consider productivity before making policy decisions, but measuring productivity in real time is challenging, especially in a services-based economy. While last year's productivity boom may have contributed to a soft landing, it remains to be seen if it represents a transformative shift in the US economy.

via CNN|

#economics #federal-reserve #inflation

economy1 year ago•1 min saved

"Market Experts Predict a Return to 'Roaring '20s' Economic Growth in the US"

Market veteran Ed Yardeni predicts a potential "roaring '20s" for the US economy, citing a combination of loose post-pandemic monetary policy and rapid technological change driving growth over the next decade. Drawing parallels to the 1920s, he emphasizes the potential for a productivity growth boom fueled by a technology revolution. This outlook follows better-than-expected GDP expansion and record-high S&P 500 levels, aligning with UBS's similar forecast for a "roaring '20s outcome" for the US economy.

via Yahoo Finance|

#economy #ed-yardeni #productivity-growth