More inflationary pressures.
The Fed is in a bind. When they start selling, rates are going up.
* * * * * J B K * * * * *
San Francisco
Feb. 22 (Bloomberg) -- Corporate investment will contribute to stronger growth in the U.S. and the economy will start to add jobs early this year, a survey of business economists showed.
Spending on equipment and software by companies is expected to increase 7.2 percent this year, up from the November survey's projection for a 4.2 percent gain, according to the median estimate of 48 economists surveyed by the National Association for Business Economics. Purchases will rise even more next year, jumping 8.6 percent.
Corporate spending will help drive economic growth of 3.1 percent this year and 3.2 percent in 2011, economists said. That will help make up for weakness in consumer spending, which accounts for about 70 percent of the economy, as the nation pulls out of the worst recession since the 1930s.
http://www.bloomberg.com/apps/news?pid=20601068&sid=a__WFKqq1xzA
