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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