These developments should increase resource utilization somewhat further, thereby fostering a stronger pace of wage and price increases. Of course, considerable uncertainty always attends the economic outlook. There is, for example, uncertainty about when—and how much—inflation will respond to tightening resource utilization. Possible changes in fiscal and other government policies here in the United States represent another source of uncertainty.
Financial stability and macroprudential policy in the Economic and Monetary Union The euro area’s ongoing economic recovery faces renewed global headwinds that are weighing on the economic outlook.