New York Times (08/11/14) Nelson D. Schwartz
Speaking at a conference organized by the Swedish Ministry of Finance, U.S. Federal Reserve vice chairman Stanley Fischer said that global growth is “disappointing” and that future gains likely will be hampered by fundamental headwinds. However, he did indicate the slow recovery could be tied to the Great Recession, though “it also is possible that the underperformance reflects a more structural, longer-term shift in the global economy.”
The three significant headwinds holding back U.S. growth are the anemic housing market, cuts in federal government spending, and weaker global growth that reduced demand for American exports. One major concern has been the slow growth in the size of the U.S. labor market as Baby Boomers retire and many workers have given up looking for jobs.