U.S. Outlook: What to expect in 2016
In this week’s U.S. Outlook report, we give you a little preview of what you can expect from the U.S. economy and interest rates in 2016.
- On a year-on-year basis, real GDP is expected to slow from 2.5% estimated for 2015 to 2.4% in 2016.
- An increase in average hourly earnings growth into the 3.0% range is entirely possible by the end of 2016.
- Our baseline forecast is that the Federal Reserve will start raising interest rates this month, and three additional rate hikes will occur in 2016.
- Expect more dollar appreciation and continued low oil prices.