In addition, financing conditions in the euro area are favourable, as real and nominal short-term and long-term interest rates are currently at very low levels. Furthermore, the expected further decline in consumer price inflation in 2002 will lead to higher growth in real disposable income that should support domestic demand.
Even though the Fed has been and is committed to a dual mandate to achieve maximum employment and price stability, in today’s world, U.S. policymakers can hardly ignore these risks, 2/4  BIS central bankers' speeches  and three of our most recent FOMC statements have highlighted concerns about global economic and financial developments.