A Dovish Hat Trick?

US investors were treated to a dovish hat trick on Thursday, when data showed productivity grew by the most in three years, labor costs fell and jobless claims increased. The 4.7% increase in productivity for Q3 topped consensus, which was looking for 4.3%. The range, from more than three-dozen economists, was 2.8% to 5.4%. This matters. Higher productivity is one way (the best way) to sustain robust growth outcomes without unacceptably high inflation. As a reminder, productivity is just ou