- Reduction in financial stress in Europe a welcome development for US
- Europe’s situation remains difficult
- Europe solutions include expansion of firewalls, strengthening banks, efforts to increase growth and competitiveness
- Fed is right to use its tools to help stabilize US should markets require such action
- US institutions have ‘very limited’ exposure to most vulnerable European countries
- If solution took a severe negative turn, US financials would face problems
- Dollar swap lines have eased funding pressure
- Geithner’s testimony for tomorrow was also published and it’s the same as today’s
It appears as though Fox Business got a copy of the prepared testimony and now it has been posted on the Fed’s site. The topic of the testimony is The European Economic and Financial Situation so the euro-centric focus shouldn’t be a surprise.
