https://personal.vanguard.com/us/insights/article/economic-week-review-04292011
Economic Week in Review: Nothing easy about this rocky recovery
The U.S. is on the mend from the recession and financial crisis, but while the repairs are evident, the workers aren't yet ready to pack their tools and take down the scaffolding. The economic situation is serious enough that Fed Chairman Ben Bernanke held the first-ever news conference for the Federal Market Open Committee (FOMC) in addition to releasing a customary statement. Overall, the economic news this week was mixed. Real gross domestic product (GDP) grew at a slower pace in the first quarter than it did in the fourth quarter of 2010. Consumer confidence and the housing market are slowly improving, but still not at levels considered healthy. The stock market surged on good news and shrugged off the bad. For the week ended April 29, the S&P 500 Index rose 2.0% to 1,364 (for a year-to-date total return—including price change plus dividends—of about 9.1%). The yield of the 10-year U.S. Treasury note decreased 10 basis points to 3.32% (for a year-to-date increase of 2 basis points).
Fed continues course, adjusts forecast
After meeting earlier this week, the Fed amended some of its key forecasts but left its monetary policy unchanged. The central bank voted to keep the target federal funds rate in the 0% to 0.25% range, as it has since December 2008, "for an extended period," and complete its $600 billion purchase of Treasuries by June. The economic recovery is proceeding at a moderate pace and overall conditions in the labor market are improving gradually," the Fed's statement said.
Mr. Bernanke also addressed the nation's key economic concerns in a live broadcast, where he empathized with the public. "A lot of people are having a very tough time, so I can certainly understand why people are impatient," he said.
The Fed slightly lowered its forecast for economic growth this year and raised its outlook for inflation, which is expected to decline again in 2012 and 2013. It also modified its view on employment, which it sees falling a bit more than earlier projected.
Economic growth eases
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Zim.
Mad Poet Strikes Again.
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