Private Sector a Bright Spot in Modestly Growing Economy


The Federal Reservesays the U.S. economy is growing modestly and they expect the growth to pickup.

The Fed's commentscame after a two-day policy meeting in Washington. The Central Bank also notedthat mortgage rates have been rising and inflation may be too low. For now the Fedwill continue buying $85-billion a month in bonds to help lower long-terminterest rates.

A bright spot for thenation's recovering economy is the private sector. They added 200,000 jobs in July,according to payroll processor ADP.

Small business ledthe way adding 82,000 of those jobs for the month. Large companies added 57,000.

The government'smonthly report comes out Friday and despite budget cuts, economists expect itto show 180,000 new jobs added in July.