US Economic Recovers Slowly but Surely

The Federal Reserve's Low-Rate Policy is expected to keep on the US economy expanding, reports showed. But this will create just few jobs and somewhat control inflation.

Economic growth rate during the past six months, ending in May 2010, is placed at .04%. The report also indicated that cost of living dropped, and claims for jobless benefits reached record high within that period.

Still, many noted economists forecast that the economic recovery is intact. The Fed stand pat on it's policies that controlled well the inflation problem. But indicators showed that the labor sector is still in an unstable position. This labor situation might have been affected by the European Debt Crises.

Data indicated that companies are cutting on some unnecessary expenses, and sometimes including payrolls, to maximize profits. Indicators showed that employment has grown slightly over the past months.

The Manufacturing Sector recovered out of the worst recession since 1930. Consumer prices rose by 2% during the12 months period ending in May; while gasoline prices dropped by 5.2% in May.

But some low-income customers are still feeling the pinch of recession, and are hunting for the cheapest buys. Many are still apprehensive on losing their jobs, while paying their mortgages.

However, this indicated that economic gains and rebound from recession are quite stable. It would not be affected by the European Debt Crises, according to experts.

"The European crisis is having an extremely mild impact," said Bank of Tokyo-Mitsubishi UFJ's Zentner. "While there are some signs it's affecting business sentiment, the effect is very limited at this time."