Diane Swonk was one of several economists to speak at the Executives’ Club of Chicago’s annual economic outlook luncheon program on Thursday. Economists were asked to make predictions about what to expect in 2012, and Swonk weighed in with a lukewarm forecast. Swonk is skeptical of a major drop in unemployment, expects full year GDP growth to be at around 2.25 percent, and for the Dow Jones Industrial Average to finish 2012 at about 13,500.
Additionally, she predicts that the Federal Reserve will maintain its resolve when urging companies to invest free cash flow into the economy. When it comes to personal investing, she believes that Real Estate Investment Trusts could be a good investment due to high demand for rental properties as the housing market remains slow.