Although
downside risks to growth remain, the y appear to have diminished somewhat, and the upside risks to inflation are also of significant concern to the Committee.
You might think 7 % is too high, but there are significant
risks to growth in any economy from government intervention, plague, war, famine, etc..
Even with the improved outlook, a «strong majority» of Fed officials voiced concern that a trade war would harm the economy, and some policymakers said the recent turbulence in financial markets
highlighted risks to growth, the minutes showed.
With respect to downside
risks to the growth outlook, one that is hard to gauge is the potential fallout from the result of the recent U.K. referendum.
Officials including Jerome H. Powell, the Federal Reserve's chairman, have noted some
potential risks to growth, and it is possible, though unlikely, that the Fed will reflect more of those concerns in its statement after Wednesday's meeting.
The IMF's Global Financial Stability Report, which we published last week, found that, while global growth momentum remains strong, short - term risks have increased recently amid rising trade tensions, while medium -
term risks to growth and financial stability remain elevated.
The talks also touched on
nonfinancial risks to growth, such as the refugee crisis, terrorism and a looming referendum in Britain over whether or not to leave the European Union.
Upside risks to growth may fuel rising inflation expectations, which should also manifest themselves in steeper long - end curves.
Moreover, contagion effects from the sovereign debt crisis in the euro zone, which appears to be slipping into recession, are expected to remain as a
primary risk to growth in 2012.
Policy makers said yesterday that «downside
risks to growth remain» even after their half - point reduction in the main rate to 1 percent.
Even with the improved outlook, a «strong majority» of Fed officials voiced concern that a trade war would harm the economy, and some policy makers said the recent turbulence in financial markets
highlighted risks to growth, the minutes showed.
The IMF listed the greenback's current value as
a risk to growth.
Though all measures of inflation were coming down as summer turned to fall and the economy clearly was slowing following a July brush with $ 4 - a-gallon gasoline, the FOMC decided to hold the fed funds rate at 2 %, concluding that «the downside
risks to growth and the upside risks to inflation are both of significant concern to the committee.»
This GFSR also examines the short - and medium - term implications for downside
risks to growth and financial stability of the riskiness of corporate credit allocation.
Moreover, market expectations may be putting insufficient weight on the possibility that the economy could outperform our expectations, that financial conditions could ease, or that
the risks to growth from Brexit and other international developments could fade away.
This is an important psychological shift for investors previously obsessing over downside
risks to growth and inflation, typified then by the talk of «secular stagnation» and «liquidity traps.»
The downside
risks to growth and the upside risks to inflation are both of significant concern to the Committee.
ECB policymakers also adjusted their assessment of
the risks to growth, saying for the first time that the risks were «moving toward a more balanced configuration,» although cautioning that risks were still tilted to the downside, mainly due to global factors.
The downside
risks to growth and the upside risks to inflation are both of significant concern to the Committee.
Following an intermeeting conference call, the FOMC releases a statement about the current financial market turmoil, and notes that the «downside
risks to growth have increased appreciably.»
«The forecast builds in
some risks to growth, particularly the oil price risk.
This GFSR also examines the short - and medium - term implications for downside
risks to growth and financial stability of the riskiness of corporate credit allocation.
The possibility of a sharp slowdown in China and other emerging market economies, a further rise in the dollar, and geopolitical turmoil remain downside
risks to growth.