Bank of America Projects Economic Activity Into 2025

A new Bank of America Merrill Lynch forecast sees relatively consistent economic growth until 2025, with interest rates higher by nearly 3.5 percent by 2018. Bank of America: Long run unemployment remains steady The bank’s U.S. economic forecasting team sees long-run unemployment remaining steady at 5 percent, due in large part to economic factors, while inflation starts to creep into the picture in 2016 – and by 2018 most inflation measures will exceed the Fed’s 2 percent target. The “Long-run projections for key macro variables” was developed by Ethan Harris, Michelle Meyer, Michael Hanson, Emanuella Enenajor, Lisa Berlin and Alexander…