Europe remains a key concern of global economies
Federal Reserve Board Chairman Ben Bernanke appeared before the Joint Economic Committee on Thursday expressed continued concern about the looming “fiscal cliff” that awaits the US economy at the end of the year.
He also expressed worry about the ongoing European debt crisis, but said US officials could have little impact on events and were in a position of reaction, rather than action.
Meanwhile, China somewhat surprised analysts by cutting interest rates. Some interpreted this move as a worrisome sign.
“’As the first rate cut since Dec 2008, the surprise move sends a strong signal that the government will be more active in supporting demand and stabilizing growth,’ wrote Citi Investment Research & Analysis Hong Kong analysts Shuang Ding, Minggao Shen, and Serena Wang in a June 7 note, according to Businessweek.