Five reasons to be hopeful about the US economy in 2014


Quartz

This could really be the year. After years of post-crisis malaise, the stars look to be aligning for the US economy in 2014. Here’s why, according to Wall Street’s economy watchers.

1. Government austerity won’t be as much of a drag on growth.

“The impact of higher tax rates and sequestered government spending was a headwind to the economy in 2013, but should prove less onerous this year. That alone should give the private sector more breathing room to push forward the expansion.”

-J.P. Morgan Economic Research

2. Interest rates will stay low by historical standards.

“The Federal Reserve is likely to conclude its QE3 program in late 2014. But we still see no hikes in short-term interest rates until early 2016 … Reasons for a continued low-rate policy include below-target inflation [and] significant labor market slack beyond the headline unemployment rate…”

-Goldman Sachs Economics Research

3. The US labor market…

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