Forecasters See Rate Hike Ahead

The nation’s economic forecasters aren’t worried about an inflationary surge, but they still believe the Federal Reserve will raise interest rates soon to dampen any price pressures.

In a survey released Monday, forecasters for the National Association for Business Economics expressed greater concern about government spending and the education system.

A fifth of the 43 professional forecasters polled last month said the growth of government spending, especially in entitlement programs, was their chief long-term concern.

Another fifth called a weak education system and a poorly prepared work force the most serious economic problem.

The forecasters predicted the economy would grow at an average quarterly rate of 2.4 percent over the next four quarters. The survey consensus also sees continued low unemployment, averaging 5 percent this year and 5.1 percent next. The results were released by the NABE at its annual meeting.