a long, slow recovery

Mike Bertelsen

With the recent U.S. jobs report, the evidence is clear that the economic recovery is still ongoing and it's going slowly. There is not enough jobs added to make an impact for growth that is needed. This opens the door for new Fed moves.

European problems and slow growth in China have added to the recovery problems in the U.S. The commitment to hire new employees is not present with large corporations. Small and medium sized businesses can't quite get over the hump to gain more profits. We are stagnant.

Investors this past week went to U.S. government bonds. Interest rate futures aren't likely to rise until the second quarter of 2015. The dollar has seen a rise against the euro, but could short covering turn against the dollar in the next two weeks?

We still don't have a "kick start" for the recovery under the Obama administration. The economic blueprint for more business just isn't there. Our job growth has stalled and there doesn't seem to be any spark to unleash capital for more jobs. Clearly we need a new direction.

About 23.2 million American were unemployed or underemployed in May. The work week dropped to 34.4 hours.

Quite frankly the Fed doesn't have many choices to make. Interest is still low and really can't be lowered any more. The QE3 scenario has been tossed around for about 4 months now with no definite direction. The recommendation is to take the slow economy and deal with it as best we can.

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