US DATA: NABE outlook survey for 2011-12, conducted Aug 10-24
before the latest stimulus announcement, lowered growth ests and says
uncertainties abound. Panel ests “real GDP to grow at a modest pace of
1.7% in 2011 and 2.3% in 2012. Factors supporting growth include
accommodative monetary policy, growth in the rest of the world, business
investment spending, and pent-up consumer demand.” Also says “Survey
respondents expect monetary policy to remain persistently accommodative.
Seven out of eight panelists expect the federal funds rate to remain at
current levels through the end of next year, in line with Fed guidance.
Additionally, 43 percent view further balance sheet expansion-QE3-as
likely or very likely.” See MNI Main wire.