According to a recent article in the Union Tribune, Ben Bernanke of the Federal Reserve believes the economy will continue to inch forward in 2012, but it appears the economy is bumping along at a slower pace than expected.

Unemployment remains a large factor in the current state of our economy. The Bureau of Labor Statistics states that annual average unemployment rates in 2010 rose in 31 states and the District of Columbia, but declined in 18 and did not change in 1. Employment-population ratios decreased in 43 states and the District of Columbia, increased in 3 and were unchanged in 4. Source: http://www.bls.gov/lau/

On a statewide perspective, the seasonally adjusted unemployment rates for California hovered around 11.7% for May 2011.

Ben Bernanke states, "We do believe that growth is going to pick up going into 2012, but at a somewhat slower pace than what we had anticipated in April. We don't have a precise read on why this slower pace of growth is persisting". -Ben Bernanke

Read the entire report from the Federal Open Market Committee here.

One way to think about it is that maybe some of the head winds that have been concerning us, like, you know, weakness in the financial sector, problems in the housing sector, balance sheets and deleveraging issues, some of these head winds may be stronger or more persistent than we thought.

Source: Union Tribune, http://www.signonsandiego.com/news/2011/jun/22/quote-day-bernanke-economy/

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