Want to know what economists are thinking?

Just go and check out the results of the Livingston Survey, the oldest continous survey of U.S. economic forecasts (in business since 1946). Reuters has a good summary here.

The results are very similar to the ones I described a few days ago (based on a Federal Reserve survey): growth will stay over 3% and inflation will average 2.5% over the next ten years. Thus, economists see long-term interest rates rising to 5% as early as next year.

Needless to say, the bond market begs to differ. Only time will tell who's right.