6/18/09

After falling the past few weeks, initial claims for unemployment benefits are back up to 608,00 in the week ended on June 13th.  The optimism built from the falling in initial jobless claims was short-lived, stressing the road to recovery will hit bumps.  Adam Posen, a future Bank of England policy maker, believes the U.S. economy will see a “W” shaped recovery as opposed to steady growth.  Sustained consumer confidence and loosening of the credit market will be the key factors that will drive the U.S. economy out of the recession.