• Europe’s debt crisis is the ‘most pressing issue’
  • Europe and US growth can’t be boosted with fiscal expansion, need structural reforms
  • US growing at sluggish pace see modest pickup in H2 2012
  • Current Fed policy is ‘appropriately calibrated’
  • US fiscal situation needs dramatic sustained action
  • Global economic outlook is ‘tepid’
  • Long period of debt paydown,weak growth likely which policymakers must accept to prevent further problems
  • Feds’s extension of operation ‘twist’ seen by some as akin to a 25-50 bps rate cut.
  • Monetary policy can be effective even when rates are close to zero

Speaking in London today (Bloomberg /Reuters reporting)