The U.S. economy is slowly healing and will avoid a relapse into recession, the American Bankers Association’s economic advisory committee said yesterday.
The committee, which includes the chief economists from many of the biggest U.S. banks, said Europe’s sovereign debt turmoil would inflict minimal damage on the U.S. economy, aside from trimming exports.
On average, the economists pegged real economic growth at 3.2 percent in 2010 and 3.0 percent in 2011.
That was similar to the findings in a Reuters poll released yesterday.
Although that growth rate is not robust enough to repair the ailing labor market, the committee unanimously agreed that a double-dip recession was very unlikely.
High unemployment and low inflation will keep the Federal Reserve’s interest rate near zero through the end of the year, economists said. By June 2011, experts thought the benchmark Fed funds rate would reach 1 percent, still historically low.