US Economy Grows 3.3% in Q4 as Productivity Rises, Fed Says No Signs of Inflation Yet
- US Q4 GDP grew a surprisingly strong 3.3%
- Yellen says this signals healthy spending and productivity gains, not inflation
- Core inflation was 2%, exactly the Fed's target
- Unclear if productivity gains will persist or if AI is driving gains
- More output is good if it doesn't create labor market pressures