Costs Up, Revenues Down

First Quarter Productivity declined by 1.7%, while the Unit Labor Cost rose 4.2%.  So it’s getting more expensive to receive fewer results…sounds like the government… Speaking of the government, in her testimony to the Joint Economic Committee on Capitol Hill this morning, Fed Chair Janet Yellen said that she believes that the economy will expand at a faster pace this year compared to last year.  She also affirmed that a highly accommodative policy is warranted given the downbeat labor market.  Translation: “we are spending money and so should you, even though you may not have a job”.