MarketWatch (03/28/14) Laura He
The benchmark U.S. interest rate likely will remain near zero until well into 2015 because of low inflation and high unemployment, says Chicago Federal Reserve President Charles Evans. He anticipates a rate hike in the second half of 2015.
Meanwhile, first quarter 2014 gross domestic product may be affected by the recent harsh winter weather and decline to as low as 1.5%, based on “some private-sector estimates” he says. But “business prospects are still good,” so GDP should recover in the second quarter. He anticipates growth of approximately 3% for the rest of this year.