Economic forecasts for the U.S. are reflecting a happier vibe.
To be sure, long-term U.S. Treasury bond interest rates are lower than those for short term bonds—a phenomenon that has typically been followed by recession. Office building and shopping mall construction is way down, and huge future bank write-offs for real estate loans and mortgages are possible. Massive federal debt and spending and debt ceiling deadlocks recently spooked financial markets, and the Federal Reserve is likely to notch interest rates up again in coming months.
