Economic Outlook Bright Amid 1990s-Like Conditions of Strong Growth, Productivity Gains
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The current economic environment has similarities to the second half of the 1990s, suggesting strong GDP growth, productivity gains, and moderate inflation ahead.
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Productivity growth could accelerate like it did in the late 1990s, boosting GDP while keeping inflation in check.
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The tight labor market incentivizes businesses to invest in productivity-enhancing technologies.
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Positive wealth effects from record high stock prices support continued economic resilience.
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Analysts have sharply revised upward long-term S&P 500 earnings expectations, but still below previous melt-up peaks.