Economic Insights – July 2012

Faced with an atrociously mismanaged fiscal policy and a highly accommodative monetary policy, the weak U.S. economic recovery continues to limp along. 

In recognition of this reality, the Federal Reserve made some changes to its mid-June policy statement as contrasted with earlier statements.  Specifically, the Fed said “growth in employment has slowed,” “household spending appears to be rising at a somewhat slower pace,” and unemployment looks likely to decline “slowly,” rather than “gradually.”  It also acknowledged that inflation “.....