Jeannine Aversa

WASHINGTON -- Deep spending cuts by state and local governments pose a growing threat to an economy that is already grappling with high unemployment, depressed home prices and the surging cost of oil.

Lawmakers at state capitols and city halls are slashing jobs and programs, arguing that some pain now is better than a lot more later. But the cuts are coming at a price -- weaker growth at the national level.

The clearest sign to date was a report Friday on U.S. gross domestic product for the final three months of 2010. The government lowered its growth estimate, pointing to larger-than-expected cuts by state and local governments. The report suggested that worsening state budget problems could hold back the recovery by putting more people out of work and reducing consumer spending.

WASHINGTON -- The U.S. economy grew unevenly in early fall, with more than half the regions of the country expanding modestly while others struggled to grow.

A survey by the Federal Reserve released Wednesday found that seven of the Fed's 12 regions reported moderate improvements in business activity. Three regions -- Philadelphia, Richmond and Cleveland -- described economic activity as mixed or steady. Only two regions -- Atlanta and Dallas -- suggested economic growth was slow.

WASHINGTON -- There's no relief from the jobs crisis -- for everyday Americans or lawmakers facing the midterm elections. The most rampant layoffs of teachers and other local government workers in nearly three decades more than offset weak hiring in the private sector in September, resulting in a net loss of 95,000 jobs. Unemployment remained stuck at 9.6 percent.

WASHINGTON -- The number of people signing up for unemployment benefits dropped to the lowest level in two months, an encouraging sign that companies aren't resorting to deeper layoffs even as the economy has lost momentum.

WASHINGTON -- The economy got what it needed in April: A burst of hiring that added a net 290,000 jobs, the biggest monthly total in four years. It showed employers are gaining confidence as the recovery takes deeper root.

WASHINGTON -- Forceful action by policymakers in the United States and abroad during the financial crisis allowed the global economy to dodge a second Great Depression, Federal Reserve Chairman Ben Bernanke said Thursday.