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The article focuses on U.S. industrial productivity and its role in determining Federal Reserve Board monetary policy. The recession has left a large amount of unused production capacity in many industries, which creates a major drag on both economic development and prices. However, should the board keep interest rates low and capacity utilization increase unexpectedly, inflation could result.

The article reports that prices on U.S. stock markets declined sharply on June 6, 2007. U.S. government reports that productivity gains slowed and labor costs increased during the first quarter of 2007 were held most responsible for the losses. Investors feared a renewal of inflation in the U.S. economy. The decline came just two days after several stock price indexes set record highs.

The author cites the pitfalls of industrial-capacity utilization used by the U.S. Federal Reserve as indicator in predicting inflation which he says is more likely after the 30-year Treasury yields fell to 4%.

The article reports on a statement by Sysco Corp. that high prices of fruit, vegetable and dairy products are the main cause of inflation and not meat products. The article says that meat producers have been critical of the use of corn-based ethanol for fuel which they say has caused the rise in meat prices. Ethanol producer Archer Daniels Midland Co., however, answered that transport cost and not food-versus-fuel competition has been the main cause of inflation.

Focuses on the U.S. Federal Reserve's May industrial-production and capacity-utilization report. Questions of economists concerning the Federal Reserve's capacity-utilization numbers; Views of economists Edward McKelvey of Goldman Sachs and Alliance Capital chief economist Joseph Carson; Topic of business spending on new equipment; Reference to the Institute of Supply Management's economic report in April.

Focuses on United States Federal Reserve Chairman Alan Greenspan's June 17, 1999 testimony before the Joint Economic Committee of Congress. Evidence of Federal Reserve intention to raise interest rates; Warnings of the inflationary pressure of continued economic growth; Details and analysis of his testimony.

Focuses on information about United States economic conditions from July to September, 1999, in a US Department of Commerce report released November 24, 1999. Revised estimate of annual economic growth; Evidence of inflation in early stages of production; Forecasts; Details of economic indicators.

Reports on increase on productivity in the third-quarter of 1994. Report by US Labor Department on productivity of non-farm businesses; Views of economists on the increase; Information on inflationary pressures; Factors responsible for productivity increase.