Fed’s Easing Could Adversely Impact Europe’s Recovery

The European economy has many problems. One is out of the region’s control: the United States Federal Reserve.

Recent fears that the Federal Reserve could begin withdrawing its economic stimulus have prompted interest rates to rise around the world, putting business loans further out of reach for companies in Spain, Italy and France.

For the United States, the Fed easing on stimulus efforts would signal that the American economic rebound has enough momentum to continue on its own. But for most of Europe, still struggling through a recession, the Fed’s moves could make a recovery even harder to achieve.


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