U.S. quarterly economic outlook

Global headwinds have increased speed since last Quarterly Economic Forecast in June. Slowing growth in China and concern over policymaker's management of its economy have led to tighter financial conditions and weaker global growth.

Domestic oriented segments of the American economy continue to make strides. Housing and consumer spending activity have accelerated. With lower gasoline prices leaving even more cash in consumers' pockets, this is likely to continue.

Strengthening domestic demand, weaker global demand, and a higher dollar mean that America will export less to the rest of the world and import more. This will weigh on real GDP growth, even as it helps to pull the rest of the world out of its funk.

"We expect the American economy to grow in a narrow range of 2.4% to 2.6% between 2015 and 2017. Over that period, the unemployment rate is expected to dip to 4.8% and the Fed is likely to engage in a gradual tightening cycle that will see the fed funds rate rise by roughly 75 basis points in 2016, and the same amount in 2017",says TD Economics.