Moodys Analytics Economist Mark Zandi put the kibosh on the low-to-no-yield mantra thats been dogging investors and money managers at the National Association of College and University Business Officers Endowment Management Forum this year, saying Treasury yields are on track to yield as much as 5% in three years.
Zandi went on to predict the economy will grow to 4% between 2014 and 2015 and add as many as three million jobs as early as 2014 thanks, in part, to the massive deleveraging thats taken place since 2008. The U.S. growing independence from foreign energy providers and a new role as a service provider for emerging markets, Zandi noted, will add some juice to hit full employmentdefined as a 5% unemployment rateby 2016. He was quick to add all his views depend on what happens in a government increasingly marked by brinksmanship and gridlock. The key is that D.C. gets it together, he said.
Others, such as Brookings Institution CIO Catherine Piez, were skeptical. Economists tend to be right 49% of the time, she said in a later panel.