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Still, most of Bernanke's testimony last month focused on the many risks the U.S. economy still faces and the help the Fed's support programs have provided. Recent economic reports have painted a mixed picture of the economy's health. The housing recovery looks sustainable and the auto industry is on pace for another solid sales year. Both have benefited from the Fed's low interest-rate policies, which have helped make mortgages and loans cheaper. Steady job growth and low inflation have allowed consumers to keep spending, even after higher Social Security taxes have reduced their paychecks this year. Still, wages are barely increasing. A measure of U.S. factory activity fell in May to its lowest level since the last month of the Great Recession. And while the service sector is still growing, a closely watched survey of those firms showed many held back on hiring last month. Service firms have been the main source of job gains in recent months. The government releases the May employment report on Friday. Economists forecast that employers added 170,000 jobs, roughly in line with April's pace, while the unemployment rate remained at a four-year low of 7.5 percent. The overall economy grew at an annual rate of 2.4 percent in the January-March quarter but many analysts believe growth is slowing in the current April-June period to around 2 percent.
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