Economic Muddling

   The American economy expanded moderately in the first quarter of this year, the Federal Reserve Board reported, but "In the euro area, real GDP contracted for the fifth consecutive quarter," according to the Fed's minutes of its March meeting.
   Solid numbers for U.S. output during the first quarter won't be released for another two weeks, but buried in the Fed's prose was a hint that things are muddling through, meaning the board doesn't see explosive growth, but they don't see a crash, either (not that they would say so if they did).
   Fed Chairman Ben Bernanke acknowledged in a speech in London last month that "most advanced industrial economies remain, to varying degrees, in the grip of slow recoveries from the Great Recession." And he warned of international competition as central banks adjust their monetary policies to gain an advantage in trade.
   Christine Lagarde, managing director of the International Monetary Fund, warned of "uncertainty" that "casts a shadow on the recovery." Sequestration, she told the Economic Club of New York on Wednesday, is "an extremely blunt instrument, imposing deep cuts in many vital programs -- including those that help the most vulnerable," while leaving untouched the things that drive other spending. And she called for "a global financial system" to coordinate and support stability and growth.
   "We simply cannot have pre-crisis banking in a post-crisis world," Lagarde added.
   Meanwhile, the money mavens of the financial world are watching and waiting.
   Upcoming events to watch: The IMF will gather representatives of its 188 member nations April 19-21 in Washington. And later that week, official GDP figures for the U.S. first quarter are due to be released.