Link to the Show / Show Notesexcerpt from speech: In considering the economic outlook, it’s important to bear in mind the broader transition that is taking place. In the three-year period leading up to the middle of last year, we’ve seen above average growth. Real gross domestic product – our best measure of total production in the economy – grew at a 3 ¾ percent annual rate. To appreciate the strength of that performance, note that the trend rate of GDP growth – by which I mean the rate consistent with trend growth in productivity and the labor force – is more like 3 percent. Labor market conditions improved significantly over that period, with 5.4 million new jobs created and the unemployment rate falling by a full 1 ½ percentage points. With jobs increasingly plentiful, household spending surged – real per capita consumption rose at a robust 2.6 percent annual rate. And even as their spending increased, consumers continued to build wealth; household net worth increased by 31 percent to reach a level equal to five years of personal income.
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