U.S: Sizzling Stats And Sweaty Palms

Stronger growth, but mediocre productivity, have the markets fretting

Wall Street was delighted after Federal Reserve Chairman Alan Greenspan's upbeat assessment of the economy a few weeks ago. He predicted continued moderate growth in the second half and discussed at length the possible inflation benefits of technology-driven gains in productivity. It all sounded like the Fed had put policy on hold for a long time, and that was music to the markets' ears.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.