Economy Bouncing Back, Fed Survey Finds

(AP)  The economic recovery gained traction in the late fall as shoppers spent a bit more and factories bumped up production, according to a Federal Reserve survey released Wednesday.

The Fed's latest snapshot of business barometers nationwide found that "economic conditions have generally improved" since the last report in late October.

Eight of the Fed's 12 regions surveyed reported "some pickup in activity or improvement in conditions," the Fed said. Those regions were: Boston, New York, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.

The other four regions - Philadelphia, Cleveland, Richmond and Atlanta - described conditions as "little changed" or "mixed."

The new report adds to evidence that the economy is back on its feet, after being knocked down by the worst recession since the 1930s.

The main challenge for Fed Chairman Ben Bernanke, who will be on Capitol Hill Thursday seeking confirmation for a second term, is to keep the fledgling rebound going, especially after the bracing impact of government supports fade next year.

To that end, the Fed is expected to hold a key bank lending rate at a record low near zero when its meets on Dec. 15-16. Economists predict the Fed will keep rates at super-low levels well into next year.

With Wednesday's survey also finding that inflation remains under control, the Fed has leeway to hold rates at record-lows. The Fed hopes that will entice people and businesses to step up spending, which would bolster the economy.

Although the jobs market remains lousy, the Fed survey found some scattered signs of improvement in some markets.

In the Boston region, some businesses were starting to hire and reverse pay cuts or wage freezes implemented earlier in the year. The St. Louis region noted that the service sector recently started to expand.

Still, holiday hiring expectations nationwide were mixed, the Fed report said. And most private economists predict that even as the pace of massive job losses slow, the nation's unemployment rate

now at a 26-year high of 10.2 percent - will continue to climb into next year. Some predict it will rise as high as 11 percent by the middle of 2010 before slowly drifting down.

The Fed warned last week that it could take five or six years for the job market to return to normal.

That's why Bernanke and others think that consumers - while appearing to hold up fairly well now to all the negative stresses - may turn more cautious in the months ahead, restraining the recovery.

[berlinfoto-2009]

The performance of the economy is always tied to how free a nation is, since 9-11-2001 The United States has not been so free. Fascism may not appear to abide by this rule, but in the long it will, same is true for Electronic Fascism. Look at the East European Dictatorships between WWI and WWII, their economies did not do so well.
Most of what is wrong with the U.S,'s economy simply cannot be seen, for it is hidden to well. It can not be fixed, until it can be seen. Just too much secret government!!!!!!!!!!

[BeckieBest]

This good news is shure to upset right wing nuts.

They'd rather see the country fail than our President succeed at pulling us out of the whole Bush put us in.

[vietnamwar]

Bush fault ???again

[patocc123]

Its always easier to attack than to defend.

[SHEETPAN]

America needs to make stuff again. We need policies that help those who are willing to open shops and factories that produce basic products. Imagine what would would happen to us if trade from China and other far east countries were to stop? Shoes, clothes and basic products in general are all made somewhere else. We have empty warehouses and factories all across America just wasting away. If you want the unemployment to go down, then vote for politicians who are serious about helping business and especially manufacturing here in America. But listen carefuly to what these politicians say. Just spending alone will not create long term jobs. Specific policies that enable average people to take a risk and invest time and money into a new venture are what will create long term job growth.

[vietnamwar]

Come January 2010 jobs will diminish even more when more retail businesses will be forced to close their doors. Thanks Obama, hope and change is really working!

[vietnamwar]

The Unemployment worsened or stayed the same in most metro areas in October, the Labor Department said Wednesday, as jobs remained scarce nationwide.

[vietnamwar]

What we need is more free governemnt money and another BAIL OUT. That will fix everything according to the White House.

[vietnamwar]

But... but... but... The Fed says the recovery is full swing.....

[johnpatrick1]

Tough digging out of the mess that dope Bush the worthless and his Republican fascists made out of our economy and nation.....lest we forget who got us into this debacle. FOR all of you nitwits who stupidly supported the bush cheney torture team...hang your heads in shame for you did a diservice to America with your ignorance.

[vietnamwar]

Bush fault again? no other excuseces ???

[vietnamwar]

Consumer Spending, Factory Production Bolster Recovery after Dire Recession...

What factories ????

[vietnamwar]

Just wait until the new round of foreclosures comes from all this unemployment!

[vietnamwar]

THE TRUE MY FRIEND THE TRUE.

[ffoulkes-2009]

skyk,

There is a difference between wishing for failure and noting facts.