U.S.: The Speed Limit Is Higher, But Growth Is Still Too Fast

Already-tight labor markets may start to feel the strain

Remember when states began to increase the speed limits on their highways? Goodbye, 55 miles an hour. Hello, 65. A similar loosening of boundaries seems to have taken place in the economy as well. Indeed, for four years now, the U.S. has enjoyed a combination of economic growth of more than 4% annually and benign inflation, despite the tightest labor markets in a generation.

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