Fed Policy Makers Split With Staff, Wall Street Over Economy's Speed Limit

(Bloomberg) -- Federal Reserve policy makers
disagree with their own staff economists, and a growing chorus
on Wall Street, who say the U.S. economy can't expand as fast as
it used to without pushing up prices.

The split, signaled in the minutes of May's Federal Open
Market Committee meeting, may reflect debate over whether a
slowdown in U.S. productivity is permanent. ``Many'' FOMC
members were ``somewhat more optimistic'' than lower-ranking
officials about the economy's speed limit, the records showed.


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