In 2011, business leaders, policymakers, and investors will play important roles in shaping the investing environment. We anticipate that:
• The job market will stage a comeback. Slowing productivity gains have driven the need to bring on new workers. However, slow sales growth from tepid consumer spending will keep the pace of hiring modest.
• As 2011 gets underway, the Federal Reserve will be in the midst of providing substantial economic stimulus, after already providing a record-breaking $1.75 trillion in stimulus in 2008 and 2009. Later in the year, drags on growth will begin to emerge as the impact of the Fed’s stimulative monetary policy begins to fade and there is a gridlock-induced shrinking of the federal budget deficit.