This month marks the fifth anniversary of the beginning of the current expansion. Frequently, the early stages of an expansion include a period of above-trend growth, as underutilized resources are put back to work. As slack in the economy is reduced, however, economic growth tends to moderate.
Indeed, at that stage, some slowing of growth to a pace consistent with the rate of increase in the nation's underlying productive capacity is necessary if the expansion is to be sustained without a buildup in inflationary pressures.