In the United States, the Federal Reserve has responded to evident weakness in economic activity, and the risks posed by the possibility of a significant disruption to credit provision, by lowering overnight rates quickly. Elsewhere, policy makers are trying to assess the potential spillovers. The weak US economy and depreciating US dollar will have some impact via reduced trade in goods and services.
Developments in global money and financial market conditions and related uncertainties, notably in emerging market economies, may have the potential to negatively affect economic conditions. Other downside risks include weaker than expected domestic demand and export growth and slow or insufficient implementation of structural reforms in euro area countries.