US Economy Is Close to Seeing 'Trend Growth': Pro

Steps by the Fed to pump more money into the economy could stoke inflation, even though growth will remain moderate through 2011, according to a survey by the National Association for Business Economics. Constance Hunter, chief economist at Alladin Capital Holdings, shared her outlook.

A Short Week Long on Key Data
A Short Week Long on Key Data   

“If you have to characterize it, between glass half-full and glass half-empty, we’re saying it’s glass half-full,” Hunter told CNBC.

“We’re not having that strong above-trend growth that people are used to coming out of a recession, but we’re getting close to having trend growth, which is certainly a huge positive.” (Second opinion: Market 'Glass' Is 'Half-Full': BlackRock's Bob Doll)

Meanwhile, Hunter said she is beginning to see a sufficient recovery in terms of the European credit markets.

“Back in the spring, we had a seizure of credit markets that impacted not only the corporate credit market in Europe, but our market as well," she said. "[But now], on the new issue side, we had record months in August, September, October and we’re looking at a record month in November as well,” she said.

“But…as we trade with Europe, the consumption there is going to be weaker and it’s going to hurt the credit market at the margin for sure.”

At a Glance:

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Scorecard—What She Said:

  • Hunter's Previous Appearance on CNBC (Oct. 14, 2010)

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Monday's Top Dow Laggards (as of this writing):

Bank of America

JPMorgan Chase

General Electric*

DuPont

Alcoa

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Disclosures:

No immediate information was available for Hutner or her firm.

*GE is the parent company of CNBC and CNBC.com.

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