According to the latest stats the US economic recovery will be modest and slower than previously expected. The Federal Reserve Bank of Philadelphia's survey of 43 professional forecasters shows that the economy will grow at 2.2% annual rate in current quarter, down from the estimate of 2.8 percent three months ago.

As for the unemployment rate it was forecast to make up 9.6% in Q4 unchanged from the previous estimate. Meantime, forecasters downgraded the growth in jobs expected over the next four quarters.

Economists expect nonfarm payroll employment increase at a rate of 86,600 jobs per month this quarter and 104,200 jobs per month in the first quarter of 2011. This is down from previous expectations of 114,100 and 159,300, respectively.

Besides, forecasters also cut their inflation expectations. Over the next 10 years, forecasters expect headline CPI inflation to average 2.2 percent at an annual rate, down from 2.3 percent in the last survey. The 10-year outlook for PCE inflation of 2 percent is lower than the previous forecast of 2.11 percent.