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The Hidden Hero Fueling Soft-Landing Hopes: A Boost in Supply - The Wall Street Journal

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Workforce participation boosted the labor force in 2023.Photo: KAMIL KRZACZYNSKI/REUTERS

Federal Reserve Chair Jerome Powell signaled

an important shift this month when he said the central bank didn’t necessarily have to worry about stronger growth feeding through to higher prices.

The reason: The U.S. economy’s speed limit, known as potential growth, appears to have temporarily moved up thanks to easing bottlenecks and a boost in the number of people available to work and, possibly, in productivity, or the output that each worker produces. 

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November 20, 2023 at 08:24AM
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The Hidden Hero Fueling Soft-Landing Hopes: A Boost in Supply - The Wall Street Journal
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