Similar story. The roughly 2 percent pace of growth has brought down unemployment. But the jobless rate is still high at 8.2 percent, and the relatively slow pace of economic growth leaves little cushion against potential shock from Europe.
One domestic danger looms as well: the so-called fiscal cliff at the end of this year. That translates into austerity, US style, as some federal spending cuts kick in and some important tax breaks for individuals and investors expire. Federal Reserve Chairman Ben Bernanke has called this "a significant risk to the recovery."
