The American economy is showing renewed vigor and is poised for a pickup in growth, according to a report by TD Economics. “Job growth is gaining speed and confidence is rising,” says TD chief economist, Craig Alexander. “The strength in job growth will support consumer spending and energize housing demand, shifting the economy into third gear.”

After averaging 2.2% in 2014, the economy is forecasted to grow by 3.0% in 2015. With faster growth, the unemployment rate will continue to fall, reaching 5.5% by the end of next year, TD Economics reported.

Nowhere are the signs of rising momentum more evident than in the U.S. job market. Between January and August, the economy generated over 1.7 million jobs, nearly 300 thousand more than the average over the previous three years, according to the report.

TD Economics expects the Federal Reserve to begin its rate hiking cycle mid next year and bring the fed funds rate up to 0.75% by the end of the year. By the end of 2016, the fed funds rate will likely only be at 1.75%, which is still a highly stimulative monetary setting, TD Economics reported.

To view the complete TD Economics report, click here.