Economic Outlook 2008: Growth Slows in First Half, Picks up in Second

Source: Securities Industry and Financial Markets Association’s Economic Advisory Roundtable

The Securities Industry and Financial Markets Association’s (SIFMA) Economic Advisory Roundtable today unveiled its predictions for 2008, forecasting that the pace of U.S. economic growth would slow in the first half of the year, but accelerate in the second half. In the year-end survey, the median forecast anticipates GDP to grow but at a below-trend pace of 2.1 percent in 2008 as the economy works through the housing sector contraction and the effect of credit market turbulence.

The Roundtable also expects the Federal Open Market Committee to reduce the target Fed funds rate by 25 basis points to 4.25 percent at the upcoming December 11 meeting. The consensus view among the Roundtable members was that the accompanying FOMC statement will emphasize risks to economic growth.

Full report (PDF; 98 KB)

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