Lay-offs are at the lowest level in four months, and the Federal Reserve looks set to pause from stimulus measures.

Consumer spending increased at a two-point-four percent pace last quarter, turning out to be much better than the second quarter.

"Maybe the scare has gone on long enough that we are starting to relax a little bit," said Tina Gray of Charlotte, NC.

Federal Chairman Ben Bernanke said that's more evidence the economy is strengthening but still slowly.

"In short, while we still expect economic activity in the market conditions will improve gradually over time. The pace of progress will likely be frustratingly slow," said Federal Reserve Chairman Ben Bernanke.

The Federal left key interest rates at historic lows and decided against another round of quantitative easing, which many analysts say isn't needed.

"I think this statement is accurately reflecting an economy that is doing a little better than I think most investors were expecting," said Vanguard Group's Ken Volpert.

Many consumers are not comfortable enough yet to do what the Economy needs them to do; spend money.

"Struggling to survive.. that is why I am going to spend less. I ain't got it to spend," said Ivan Petty of Charlotte, NC.

Bernanke blamed unemployment, that he and others expect to drop only a little through the year.

"You have to remember 4/5 of our economy is service. Unless those service jobs turn around and start picking up we are not really going to make a significant dent in the unemployment rate," said Professor of Economics at Stanford Univ. Edward Lazear.

The Fed can't figure out also how to help the housing market that remains.

"We have developments around us - the land is not going, people are not building," said Former Houston Resident Stephanie Dorazio.

With home values falling, there is fear consumer spending will drop just as spending season arrives with the holidays.