And if the global economy continues to weaken, you can bet it will become majorly overvalued…
- US recovery tepid, risks elevated due to strains in euro zone and uncertainty over domestic fiscal plans
- US needs to decisively tackle medium-term challenges while using available room to support recovery
- US monetary policy appropriate; Fed has room to ease further if outlook deteriorates
- Credible plan for fiscal tightening urgently needed
- US to expand 2% in 2012; 2012 view cut to 2.25% from 2.4% ; risks tilted to the downside