This week as the previous one was a gloomy week for the world`s leading economy as pessimism is the major feeling reigning on the U.S soil regarding its current economical conjuncture as well as the future since that the overall moderate recovery slowed down and the Federal Reserve forecast were not that appetizing towards the coming period and years.

If truth be told during the week the the Federal Reserve official unfortunately cut their forecast for 2012 growth and actually rose up their other projections regarding the unemployment levels since that this past period labor conditions have only worsened, yet according to the Federal Reserve Chairman Bernanke the FOMC is prepared to do what is indispensable and would consider further asset purchases.

No surprise than that this week as well and before these projections were released to the public that the Federal Reserve decided to expand the "Operation Twist" program by actually $267 billion through the end of the year; replacing short-term bonds with longer-term debt, as a way to reduce the unending jobless levels of the superpower and also create downward pressure on longer-term interest rates to also boost up better financial conditions.

As for the interest rates that kept unchanged, it wasn’t truly a surprise since that these rates were pledged by the Federal Reserve to be kept exceptionally low through at least late 2014 to maintain a stronger economic growth and fulfilling a "highly accommodative" monetary policy as also stated by the FOMC members within their first meeting of this year that was held in January

 And following the FOMC statement, the Fed`s 2012 projections for growth, unemployment and inflation was out before Bernanke`s press conference. Fed`s projections were cut suggesting the GDP will have central tendency of 1.9 to 2.4 percent from actually 2.4 to 2.9 percent in April and was cut down to 2.2 to 2.8 percent from 2.7 to 3.1 percent in 2013 and 3.0 to 3.5 from 3.1 to 3.6 percent for the year 2014.

Whereas unemployment is projected to actually rise gloomily within a central tendency of 8.0 to 8.2 percent in June for this year from actually 7.8 to 8.0 percent while these projections rose to 7.5 to 8.0 from 7.3 to 7.7 percent projected back in April for the year 2013 and finally these projections for the year 2014 climbed up to 7.0 to 7.7 percent this month from 6.7 to 7.4 percent in April.

No wonder that in parallel with these jobless forecasts we watched today the FOMC members attest and confirm that the labor market has lost momentum and witnessed a slowed down revival this past period and throughout the recent months

as shown by several data released confirming that the current healing of this key-sector is insufficient as overall jobless levels remain elevated at 8.2 percent.

Finally, the Core PCE inflation is projected to remain bottled up this year but could show some slight decline as a result of the past recent drop of energy prices, with a central tendency of 1.7 to 2.0 percent this year, from 1.8 to 2.0 percent forecasted back in April, 1.6 to 2.0 percent in the next year from 1.7 to 2.0 percent and 1.6 to 2.0 percent in 2014 from 1.8 to 2.0 percent.

In fact we saw this week the prices pressures remain well subdued and actually declined this past period as a result of the global and local lower prices of crude oil, gasoline and overall commodities with the black gold in point of fact plunging 23 percent to $84.03 a barrel yesterday while that on a long-term the prices pressures remain stable.

Additionally this week we watch the Philadelphia Fed. Manufacturing plummeting deeply for this month of June by 16.6 from a prior much smaller decline of 5.8 and worse of course than the projected neutral reading of 0.0, knowing in fact that this is the fastest pace in almost a year, as a result mainly of the present global economical slowdown that is limiting factories activities.

And accordingly this economical slowdown edged the local consumer spending, business investments and of course the superpower`s exports with so far the Euro-area manufacturing output shrinking at the fastest pace in three years this month due to the unending debt crisis and predicament of the area along with weaker Chinese manufacturing conditions.

Furthermore mixed housing data were released from the world`s leading economy as its existing home sales for May fell gloomily to 4.55 million from 4.62 million; below the market predictions of 4.57 million, confirming why the FOMC sees that this sector remains depressed.

In fact regardless of the clear signs of enhancement witnessed this past period within the housing sector of the country the members saw yesterday that this sector remains depressed and requires accordingly more time to truly start to heal from the recession adding that: "household spending appears to be rising at a somewhat slower pace than earlier in the year"

This week was a gloomy busy week for the superpower revealing a slow down of the current moderate recovery.