Economic Indicators | Economic Growth

It’s Too Soon To Declare the Economy Has Gone into High Gear or To Slow Support for a Full Recovery

Gross domestic product—the widest measure of U.S. economic activity—grew at an annualized rate of 3.5 percent in the 3rd quarter of 2014, according to data from the Bureau of Economic Analysis. This is a faster-than-average growth rate compared to the first 5 years of recovery from the Great Recession. However, the economy’s average growth rate of 2 percent for the first 3 quarters of 2014 is essentially right in line with previous recovery years—meaning that it is still too early to declare the recovery has reliably shifted into a higher gear. Given this, it would be extremely premature for policymakers—particularly the Fed—to ratchet down support for a full recovery.


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