Countervailing Forces

- "The latest growth scare appears to be running its course, despite lingering obstacles to a strong rebound. Although financial conditions are providing uneven support for recovery, at present they do not signal further downgrading in recovery’s prospects, especially at its core in consumer spending."
- "Recent signs that consumer spending is on a 2% growth track reflect key tensions in the outlook. Cyclical support from pent-up needs and reviving income are pitted against structural drags associated with balance sheet rebuilding and limited credit access."
- "A flurry of new fiscal policy proposals to support recovery underscores an element of uncertainty weighing on economic decision making. In the current environment, expensing of certain business investments would not likely alter the outlook much. Nonetheless, the new focus on tax policy could be an early sign that an undesirable fiscal drag on 2011 may yet be headed off."

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