The U.S. economy will grow by nearly 3% and the unemployment rate will dip to around 8% by the end of 2012. That's the prediction from Federal Reserve Bank of Philadelphia president, Charles Plosser.
The former Simon School of Business dean was in town for the 33rd annual economic seminar Wednesday.
"I think the economy is looking up a little bit. I’m a little more optimistic about 2012 than I was 2011. And hopefully the growth that we’ve been experiencing recently will continue. But it’s going to be a long slow road back for the economy as a whole," says Plosser.
He told the more than 450 luncheon attendees that the biggest risk to domestic growth is the continuing sovereign debt crisis in Europe. He added, "I, nor most forecasters, see much chance that the U.S. will slip back into recession in the coming year."
Plosser made news in the financial press by suggesting the Federal Reserve Bank of Philadelphia may raise interest rates before the middle of 2013.