But going forward, these trends will need to be monitored carefully by the world's central banks. *** I want to conclude with a few remarks about the federal budget situation, which--at least until Hurricanes Katrina and Rita struck the Gulf Coast--was showing signs of modest improvement.
Lack of broad-based agreement among European governments on a progressive path towards a more complete monetary union is also worsening the situation. Across the Atlantic, the re-election of President Obama took place against a slow recovery of the U.S. economy from a deep recession, even as the “fiscal cliff” and breach of the U.S. debt ceiling loom dangerously near.