Martin Baily says the 2.5 percent GDP growth shows the economy is slowly turning the corner, but not until the U.S. hits 4 percent growth will it be enough to bring down unemployment. Policymakers have done about as much as they can at this point – the economy needs to heal itself, he says. Problems in Ireland and elsewhere in the EU could still present a shock to our economic system and cause our slow recovery to sputter further.

Federal Reserve
Wage-price spirals
Commentary
U.S. Economy Slowly Turning the Corner
November 23, 2010