The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more. This iteration focuses on the current economic conditions in the United States.
The United States has enjoyed more than three years of modest uninterrupted economic growth since the end of the recession, with a promising improvement to select industries, including the housing market.
FACT: The US economy sped up in the first quarter of this year, with a growth rate of 2.5%. Despite growth, the Federal Reserve Bank has changed its 2013 GDP projection to an expansion rate in the range of 2.3% to 2.8%.
- In December 2012, the Federal Reserve projected growth as high as 3.0%.
- Consumer spending, exports, residential investment, and business spending on equipment and software rose, but it is unclear whether the trend will continue.
- The Federal Reserve is also concerned that prices of consumer goods have only increased 1.3% year over year, instead of targeted inflation rate of 2% to reflect healthy rises in wages and employment.
FACT: According to nearly 30 investment strategists and money managers surveyed by CNNMoney, stocks will climb further, and the S&P 500 should deliver a healthy 11% return for the year.continue reading »