Some economists lowered their forecasts for the oil bust of the 1980s, saying the history is unlikely to repeat, at lest now
Some economists lowered their forecasts for the oil bust of the 1980s, saying the history is unlikely to repeat, at lest now.
A team of 61 economists under Bloomberg survey estimated that the note's yield, which is at 4.18 per cent, will be 4.35 per cent by year-end. Last month's survey result was 4.42 per cent.
Economists are reducing their forecasts for the 10-year yield even as the Federal Reserve began raising interest rates for the first time in four years, with the most recent increase this week.
High oil prices are more likely to restrain the economy, rather than provoke inflation, said survey participants including Kurt Karl, Swiss Re's chief US economist, who cut his year-end forecast to 4.40 per cent from 4.70 per cent.
Federal Reserve Governor Ben S. Bernanke said last month that rising energy costs will probably reduce US economic growth estimated by the survey to be 4.4 per cent this year by one-half to three-quarters of a percentage point.
