WASHINGTON -- Economists surveyed by USA Today believe the U.S. economy will grow at a healthy 3.5 percent next year, the newspaper reported Monday.
The median forecast of the 58 surveyed economists sees 2005 continuing the current pace, about 3.5 percent, and leading to a continued reduction in unemployment but without much risk of inflation.
Maria Fiorini Ramirez, one of the economists surveyed during Nov. 12 to Nov. 17, described the U.S. economy as "cautious, lean and mean. It doesn't have any fluff or excess in it."
The Fed's target for short-term interest rates, which influence borrowing costs across the economy, will end next year at 3.25 percent, up from the current 2 percent, but still half the recent high of 6.5 percent hit in mid-2000, the economists said.
Consumer spending is also expected to stay strong, not increase, next year and continued low interest rates will mean a strong housing market.
