Increased spending on public infrastructure may raise private-sector productivity over time. Greater support for public and private research and development, encouragement of workers to increase their skills, and policies that improve product and labor market dynamism may also be fruitful. See Jerome H. Powell (2016), “Recent Economic Developments and Longer-Run Challenges,” speech delivered at the Economic Club of Indiana, Indianapolis, Indiana, November 29, https://www.federalreserve.gov/newsevents/speech/powell20161129a.htm.
-4economy’s performance against our statutory mandates of price stability and maximum employment. Today, the economy is as close to our assigned goals as it has been for many years (figure 5).