Predictions for America
Analyzing the previous year, Deborah Lucas, director of the MIT Center for Finance and Policy, concludes that the American economy will remain strong and continue its steady growth after the world financial crisis. She expects that the current economic situation will be buoyed by low energy prices and normalized labor market.
The American employment rate being constantly high, the Federal Reserve plans to raise interest rates this year. But, some specialists argue against it. For example, former U.S. Secretary of Labor Robert Reich thinks that this decision aims to mitigate the risk of possible inflation, but there is no sign of it.
Besides, Robert Reich is sure that the American economy has a serious structural problem. The local markets are oversaturated, and there is low demand for the whole range of services and goods the American economy is capable of producing.
There are some risks connected with the world economic trends and their influence on the U.S. There are major concerns about the upcoming elections, as all serious economic steps will be taken after November.