| Although the U.S. economy is recovering and creating | | | | U.S. recovery. The Federal Reserve decision this |
| jobs, investors and analysts expect the Federal | | | | weekend to reopen a program to supply dollars to |
| Reserve ( the Fed) this year to leave interest rates | | | | the central banks of other countries highlighted their |
| unchanged because of the turmoil in Europe. | | | | concerns. The crisis in Greece has intensified and |
| 42% of economists polled by The Wall Street Journal | | | | spread, leading to volatility in world markets. |
| believe that the Fed will wait until 2011 or later to | | | | The president of the Atlanta Fed, said on that "the |
| begin to restrict access to credit. A month ago, only | | | | crisis can be repeated" and events in Europe from |
| 28% thought the U.S. central bank would wait until | | | | the European Union problems "can be a reminder or a |
| next year to raise rates, this could affect stocks that | | | | warning to that effect." The real estate market |
| are related to the banking sector. | | | | remains the big question. Most economists projected |
| The crisis in Europe, the risks of contagion and | | | | strong growth in construction and remodeling, |
| deflationary pressures associated with these | | | | although the predictions range from an annual decline |
| problems will keep the Fed on the sidelines even | | | | of 4.3% to 25% annualized increase. |
| longer than we initially thought,the Fed is taking the | | | | A rebound in the housing market would enhance |
| stance of no sudden moves that could jeopardize | | | | consumption, and this could have a positive net |
| very fragile recovery. | | | | effect on penny stocks shares that are based on |
| Unless the crisis intensifies, it is unlikely that doubts | | | | housing and real estate sectors of the market. |
| about the ability to pay in Greece and other | | | | Economists expect a moderate growth coupled with |
| European countries will shake the U.S. economy, | | | | government spending to lead the economic recovery. |
| although they could reduce European demand for U.S. | | | | Consumer spending is picking up from very low |
| exports and bring the banks of the Old Continent to | | | | levels, but the reduction in leverage, the slower |
| limit access to credit. | | | | access to credit, equity losses and the slow labor |
| For the Fed, however, the crisis in Europe highlights | | | | market recovery will lag in comparison to the rest of |
| the fragility of the global financial system and the | | | | the economy during the rest of the year. |
| risk, however small, that external events derail the | | | | |