Fed Seeing Productivity Slowing as Breaking With Economic Trend

Fed Seeing Productivity Slowing as Breaking With Economic Trend

Pete Marovich/Bloomberg

Bernanke has portrayed the past few years’ deceleration in productivity as temporary. In an argument also espoused by Fed Vice Chairman Janet Yellen, nominated to succeed him next year, he suggested companies were forced to add workers even though economic growth was slow because they cut payrolls so much during the recession.