Gross domestic product (GDP), the widest measure of economic activity, grew at a 1.5 percent annualized rate in the third quarter of 2015. This brings the average quarterly growth rate in 2015 to 2.0 percent—right in line with the 2.1 percent average growth rates posted in 2012, 2013, and 2014. In short, this growth rate represents steady improvement, but slow improvement in the U.S. economy. Moreover, until this wider economic improvement reaches the labor market and pushes up workers’ wages, American households will continue to feel that the economy remains unhealthy, and policymakers—particularly the Federal Reserve—should not do anything to slow the pace of recovery.
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