Deflation fears are gradually receding. Last year’s Federal Reserve action to buy $600 billion worth of Treasury Bonds was an attempt to spur recovery and keep long-term interest rates low. It appears that board members are now mildly optimistic about 2011.
According to the Federal Reserve, “The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment. Household spending is increasing at a moderate pace, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.” Read more: