US Fed Member Considers France Europe’s Biggest Threat

Richard Fisher, the president of the Dallas Federal Reserve, is most worried over the euro zone’s second-largest economy, rather than its periphery.

In an interview with German newspaper Handelsblatt, Fisher said he was cautiously optimistic about the euro zone and sees an improvement in the crisis-hit region. But problems remained in France in particular, he said.

“I am concerned about France, more than any other country,”the Dallas Fed president told the newspaper. A strong France was important in the context of European history, he said.

“The risks to the development of the economy there must not be underestimated,” Fisher said.

Recent indicators have shown that the economic picture for France appears to have improved slightly, although a sharp drop in industrial output numbers released on Friday showed a recovery is still far off. INSEE statistics agency said output shrank 1.4 percent in June from May. A Reuters poll had forecast an increase of 0.1 percent.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza