by sslifer | Mar 22, 2024 | Commentary for the Week, NumberNomics Notes
March 22, 2024 The Federal Reserve has indicated that it is likely to cut the fed funds rate three times in 2024 which would reduce the funds rate from its current level of 5.5% to 4.75% by yearend. But those three rate reductions are the tip of the iceberg. The...
by sslifer | Mar 8, 2024 | Commentary for the Week, NumberNomics Notes
March 8, 2024 Every month employers have a choice. If demand remains solid they can either hire more workers, or work their existing employees longer hours. If in any given month economists know how many people are working and how many hours they worked, they can...
by sslifer | Mar 1, 2024 | Commentary for the Week, NumberNomics Notes
March 1, 2024 The Congressional Budget Office currently estimates potential GDP growth in the U.S. for the next decade to be 2.0% — 0.6% growth in the labor force plus 1.4% growth in productivity. Potential GDP growth can be thought of as the economy’s speed...
by sslifer | Feb 1, 2024 | NumberNomics Notes, Productivity
February 1, 2024 Non-farm productivity rose 3.2% in the fourth quarter after having jumped 4.9% in the third quarter. The fourth quarter increase consisted of a 3.7% increase in output combined with a 0.4% increase in hours worked. Hence, a 3.2% increase in...
by sslifer | Feb 1, 2024 | NumberNomics Notes, Productivity
February 1, 2024 Unit labor costs might be a term that is not familiar to you. Unit labor costs represent the increase in compensation adjusted for the gains in productivity. You might think that if labor costs are rising that would put upward pressure on...
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