The inflation rate, as measured by the consumer price index, should hit the Fed's 2.0% target this year and stay there next year while economic growth, measured by the gross domestic product, is seen down this year to 2.3% before rising to 2.8% next year, according to participants in the Federal Reserve Bank of Chicago's annual Automotive Outlook Symposium.
Unemployment is seen falling to 6.3% this year and 5.9% next year, according to the 26 participants from the manufacturing and banking industries, as well as consulting and service firms and academia that provided estimates.
Real personal consumption expenditures are forecast to rise to 2.8% this year and dip to a 2.7% gain next year.
"Real residential investment is anticipated to grow at a strong pace in 2014, and most of the other major components of real GDP are expected to expand at a solid pace this year," according to a summary released by the Fed.
The one-year Treasury is seen yielding 0.15% this year and 0.45% next year, while the 10-year is seen at 2.96% this year and 3.50% next.
