Fed: US economic recovery slow and painful

Chicago, July 15 (Xinhua) Mary Dally, an economic analyst at the Federal Reserve Bank of San Francisco, said the US economy should recover "slowly and painfully" in the third quarter of this year, even though the job market remains weak.　　In the latest issue of the Fed's view of the San Francisco Fed, the vicious circle of banks ' shrinking credit for losses and causing cutbacks in household and corporate spending "has begun to ease", Daly said.　　But in her report of July 9, she said that the sustainability of the recovery was partly dependent on the labour market and that the labour market was still deteriorating. The Fed's expert group on economic analysis said the real GDP of the United States should rise by about 1% per cent in the third quarter of this year and continue to climb until the end of 2010. At the same time, core inflation rates will gradually fall to 1% within 2010 years.