(Provides feedback on productiveness, paragraphs 4-7)
By David Lawder
CHICAGO, Jan 25 (Reuters) – U.S. Treasury Secretary Janet Yellen mentioned on Thursday that surprisingly robust financial progress within the fourth quarter was a “good factor” that indicators productiveness good points and wholesome spending with out will increase in inflationary pressures.
Reacting to the U.S. Commerce Division’s report that U.S. gross home product rose 3.3% within the quarter, Yellen mentioned it included core inflation at 2%, “precisely the Fed’s goal,” with decrease readings for headline inflation.
“I see this as a very good factor, reflective of robust, wholesome spending and productiveness enhancements and never, most probably, creating an inflationary problem,” Yellen advised reporters after a speech to the Financial Membership of Chicago.
She mentioned it was unclear whether or not productiveness good points would persist, or whether or not synthetic intelligence applied sciences had been including to those.
“It could be that we’re having a interval of extra fast productiveness progress than we have seen as a long term common in recent times for the U.S.” she mentioned. “It’s very speculative. Is that this one thing that is short-term? Is it an extended lasting factor?”
Yellen added that there have been many articles written concerning the potential for AI to drive productiveness, “however it will be fully speculative to go there.”
“To me, extra output is an efficient factor if it would not sign worrisome pressures within the labor market,” she added. (Reporting by David Lawder; Enhancing by Paul Simao and Sandra Maler)
