EFTA Document EFTA01458995

8 December 2015 World Outlook 2016: Managing with less liquidity There is plenty of room for the terminal rate to go up and for the bond Us' premium to turn positive. Starting in late 2012, the Fed began lowering its "long run" policy rate in sync with its forecast of lower long-run real GDP growth, from 2.5% to 2%, which corresponds to average headline GDP growth in this recovery. But with the drag from the government shrinking since early 2014 and private sector GDP growth running at 3%