Wall Street Echoes Fed’s View on Growth, Higher-for-Longer Rates
- Forecasters up third-quarter growth estimate to 3% from 1.8%
- Odds of recession in next 12 months dip to 55%, a one-year low
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Wall Street economists are growing more upbeat about US economic growth while acknowledging that it may require interest rates to stay higher for longer, in line with recent projections by the Federal Reserve.
Gross domestic product is expected to advance at an annualized 3% rate in the third quarter, reflecting stronger consumer spending and private investment, according to the latest Bloomberg monthly survey of economists. That compares to the 1.8% pace projected in August and is six times the growth rate forecast at the start of the quarter.