While these readings are below our 2 percent inflation objective, they are fairly close, and my assessment is that inflation will inch toward our objective in the coming months. Outside the near term, I am also optimistic about the longer-term potential of the U.S. economy. I am heartened by a recent pickup in labor productivity growth.
A notable development of the post-crisis period has been the abysmal pace of labor productivity growth. After averaging about a 2-1/4 percent pace in the two decades leading up to the crisis, labor productivity growth has been closer to 1 percent, on average, since 2011. While there has been much speculation, it remains to be seen what has driven this slowdown.