According to the World Bank, US GDP is forecast to increase from 2.3% growth in 2017 to 2.5% growth in 2018. Other forecasts call for higher rates of growth including one from the Federal Reserve Bank. While the increase over last year seems minor in absolute comparison, it represents an 8.6% increase on a relative basis. The key is can we get it closer to 3% for the full year without igniting inflationary fears. Given that we still have relatively weak productivity growth of 1.2%, we have headroom to be able to produce more without triggering supply push inflation.
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