Throughout the FOMC meeting, participants have attested that the overall economic conditions of the world's largest economy are enhancing and improving, but that the overall recovery tempo has lowed down at a moderate pace throughout the second quarter.
However the major economical obstruction; the labor market deterioration, has eased but only faintly as the jobless rate remains high and crucial although businesses overall activities continued to increase employment and lengthen workweeks in April and May.
Now, the country's industrial production showed clear signs of improvement, having cheerful gains, while that business investment in equipment and software climbed to the upside hurriedly and the consumer spending rose to a further level within April and May, still the housing sector is struggling to revive as housing starts dropped in May, and nonresidential construction remained depressed.
On the other hand, short-term funding markets saw their conditions weakening faintly, mainly for European financial institutions and the spreads of the term London interbank offered rate, or Libor, over rates on overnight index swaps widened markedly.
While staff released their projections for real GDP growth projecting that the country's growth rate will come in between 3.0% to 3.5% this year but reach a rate between 3.5% to 4.2% in 2011 and between 3.5% and 4.5 throughout 2012, while the jobless rate for this year will fluctuate between 9.2% and 9.5% and between 8.3% to 8.7% in 2011 to eventually reach a rate between 7.1% to 7.5% by 2012.