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The economy is overheating, with its gross domestic product growing at an alarmingly high annualized rate of 9.8 percent in the fourth quarter.
With inflation well below the Fed's unofficial target of 2 percent, unemployment stuck at nearly 10 percent, and gross domestic product growing at a lethargic rate, Mr. Bernanke has evidently concluded that doing nothing is not an option.
Yet the economic picture has been mixed at best, with unemployment still above 8 percent and the gross domestic product growing at an estimated annualized rate of only 2.5 percent in the first quarter, according to the Wall Street consensus.
With the gross domestic product growing at only a 1.5 percent rate in the second quarter, businesses have no difficulty meeting the demand for goods and services without having to invest or expand capacity.
"You would have to have an awfully big jump in consumer spending to get the gross domestic product growing at 4percentt again," said Brent Moulton, chief of the division at the Commerce Department's Bureau of Economic Analysis that produces the quarterly G.D.P. reports.
"Here you have a product growing through organic word of mouth.
Similar(44)
Between 1979 and 2014, the per-capita gross domestic product grew 77percentt, and productivity rose 75percentt.
Gross domestic product grew 2.6percentt from a year earlier, the government reported.
Only product grown in the state will be allowed to be sold in New York.
Gross domestic product grew at a revised 3.3percentt annual rate in the April-June period.
Gross domestic product grew 5.4percentt from a year earlier, the Directorate General of Budget, Accounting and Statistics said.
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