Recent Federal Reserve Open Markets Committee meeting noted the following: ?“Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area could lead to a further appreciation of the dollar and have adverse effects on the U.S. external sector. Several participants added that slower economic growth in China or Japan or unanticipated events in the Middle East or Ukraine might pose a similar risk. At the same time, a couple of participants pointed out that the appreciation of the dollar might also tend to slow the gradual increase in inflation toward the FOMC’s 2 percent goal.?

Note:  Remarks from the US Federal Resevre on the Global Economy are highly unusual.  The Wall Street Journal editorializes on the reaction to a downturn in Europe, with Germany losing its mojo.  “Everyone is looking to the European Central Bank to save the day, but there’s only so much Mario Draghi can do.”