Jim O'Sullivan Says Economic Recovery Remains On Track

In an article on MarketWatch, Jim O'Sullivan, chief economist for MF Global, said that although momentum in the US economy has slipped for the past couple of months, the recovery remains on track.

O'Sullivan said, "We believe a self-sustaining, jobs-creating recovery is now under way." Although he has cut his forecasts for US growth due to the European crisis and the selloff in US stock markets, he stressed that the big picture remains intact.

O'Sullivan and his top assistant, Stephanie Cheng, now expect the US economy to grow at 3% in the third quarter, down from 4% in the second. The growth is, however, expected to accelerate in the fourth quarter. He predicts US economic growth to come in at 3.7% in 2011, which exceeds 3% growth predicted by the rest of the analysts.

O'Sullivan has won his record eighth Forecaster of the Month award from MarketWatch in June by being more accurate on 10 major US indicators than the rest of the 42 participants.

According to O'Sullivan, "There have been headwinds." However, tailwinds outweigh them and are pushing the economy forward.

Read more from Benzinga's Markets.