The US recovery is wilting under the impact of Europe’s debt crisis and a weak housing market, Ben Bernanke’s deputy at the Federal Reserve said today.
The Fed’s vice-chair Janet Yellen said the world’s biggest economies were all slow to mend from the massive shock of the financial crisis and recession. “Their performance is even more anaemic than we would have expected,” she told the IMF’s annual meeting in Tokyo. Her comments came as IMF director-general Christine Lagarde called for “courageous and cooperative action” by Europe’s leaders to speed up their response to the crisis.
Countries are cutting deficits but moves towards central bank regulation are being held up by wrangling among members. “Action has already occurred but more needs to happen and faster,” Lagarde said.
