The recent data are discouraging, as the U.S. economy has been growing below its secular trend since 2008.
The underlying causes of this subpar performance are subject to debate, but they possibly include the time it takes for any economy to recover from a deep financial crisis, the unintended consequences of an environment of increased post-crisis regulation, and the uncertainty regarding measures for avoiding the “fiscal cliff” that would take place in 2013 under current legislation and for attaining long-term sustainability for U.S. public debt.