According to the Blue Chip survey, investment should grow at healthy rates, and productivity growth should remain strong. In these forecasts, the Federal Reserve is expected to keep raising short-term interest rates toward their equilibrium level. It all seems pretty healthy - what is there to worry about?
Well, unfortunately, there could be something to worry about, and that is what I want to talk about today. It is the nation's low national saving rate, basically the share of our output that is devoted to building up the country.