Real gross domestic product should grow 2.5% next year, as inflation rises 2.2% and the unemployment rate dips to 9.8%, according to predictions from the 23d annual Federal Reserve Bank of Chicago Economic Outlook Symposium, released yesterday.
Consumer spending should be moderately higher next year, with business spending also up. The housing sector is predicted to improve substantially.
Short-term interest rates — the one-year Treasury rate — are seen rising 75 basis points from 2009 to 2010. Long-term rates — the 10-year Treasury rate — are predicted to increase 59 basis points over the same time period.