'What 5 Percent Means'

OK, that was a seriously impressive GDP report — 5 percent growth rate, and it’s all final demand rather than an inventory bounce. But what does it mean?

It does not necessarily mean that now is the time to tighten; that depends mainly on how far we still are from target employment and inflation, not on how fast we’re growing. ... It’s interesting to note that the bond market seems quite unimpressed, with only a slight uptick in long-term rates.