Fed Adopts Cautious Outlook on Pace of Economic Recovery
Nevertheless, the catchphrase of the moment is “Summer of Recovery” with the US government paying out $116.3 billion in stimulus funds, primarily in the form of tax cuts and project spending, during the second quarter of this year. Republicans continue to point out that the unemployment rate indicates American citizens are not seeing any appreciable benefit from the so-called Summer of Recovery. Statistics reveal that 125,000 Americans lost their jobs in June, with more than 8 million jobs having been lost since the start of the recession.
Wednesday saw markets see-sawing between gains and losses throughout the day before ending the day largely unchanged. The minutes of the Federal Reserve‘s June meeting indicate that 2011 is likely to see a much slower economic recovery rate than recent expectations. Intel’s record sales for the second quarter, and upbeat forecast for the third quarter, saved the day for the Nasdaq composite index, which rose 7.81 points (0.35 percent), while the Dow Jones industrial average rose 3.7 point (0.04 percent) and Standard & Poor’s 500 fell 0.17 of a point.