US Economy Is Recovering at A Rather Slow Speed

Statistics publicized by the US Labor Department last week indicated that the decrease rate of jobless men and women had surpassed prior expectation. The number of unemployed decreased by 29 thousand on the 14^th of May well and touched 409 thousand. The expectation was 420 thousand. That figure was still above 400 thousand and had been at this level for a consecutive period of 5 weeks.



Philadelphia Federal Reserve announced that the Federal manufacturing index of Philadelphia in May well fell drastically from the previous 18.five to three.9.



The existing house sales in April also decreased drastically. The sales figure was 5.1 million in April, decreased by 50 thousand compared with the prior figure. The monthly rate of existing house sales in April also saw a decrease of 0.8 percent against the prior expectation of 2 percent enhance.



The weak statistics had forced the market to predict that the Federal Reserve was unlikely to improve the interest rate within this coming year. The market also believed that the easing monetary policy could be maintained for a period of time.



Evans, the President of Chicago Fed, confirmed that US would maintain an easing monetary environment. He claimed that the cost enhance in food and energy would not be expected into lasting inflationary pressure. The US Fed really should maintain this easing monetary policy for a period of time. The cost enhance in oil refining together with the reduction in oil production are frequently affecting economic recovery in US.Together with economic development, we really should protect the environment, specially water and oil resources. Nowadays, advanced technologies supplies us with cavitation air flotation and clarification filter to manage water and oil disposal. To further increase the water good quality, oxygen concentrator guarantees our humankind a safer place to live in.



Within the meanwhile, a member of the ECB Executive Board said that European Central Bank would need to stop the unconventional monetary policy as the financial status improved. This might be regarded as a hint that this bank would improve the interest rate within the near future.



The managing director of Faros Trading in Stanford, Douglas Borthwick claimed that under the current situation of slow economic growth, it could be an inappropriate move for Fed to improve the interest rate. Given the circumstance that the US Department of Finance held that currency exchange rate really should reflect economic fundamentals, it was predicted that dollar weakening was to be continued within the future.



The chief economist of Dwight Asset Management Firm in Bulington, Jane Caron argued that despite the weak economic information, Fed's terminating the QE2 in June was useful to the value of US dollar.



She added that the economic depression we saw was resulted from the impact imposed by the earthquake happened earlier in Japan together with the cost enhance in energy. She believed that economic growth would be re-accelerated in the other half year of 2011.