U.S. jobs be affected by the European crisis
The financial crisis in Europe affects the U.S., lawmakers say that could reduce the demand for products, could also cause stock prices to fall and this would have a negative impact on the pensions of Americans.
The European crisis is a potential job-killer for the United States and could hit pensions and 401(k)s, Federal Reserve officials told Congress on Friday.
William Dudley, president of the New York Federal Reserve Bank, told lawmakers that deterioration in the European economy could reduce demand for U.S. products.
This would “hurt growth here in the United States and would have a negative impact on U.S. jobs,” Dudley said in prepared testimony.
“It is important to recognize that the euro area is the world’s second largest economy after the U.S. and an important trading partner for us,” he said. “Also, Europe is a significant investor in the U.S. economy, and vice versa. Thus, what happens in Europe has significant implications for our economy.”
The European crisis could put more pressure on Wall Street, spreading throughout the U.S. banking system and financial markets.
Bernanke worries that Europe woes will spread to U.S.
“This could tighten the availability of credit to U.S. households and businesses,” Dudley said. “It could also cause equity prices to fall and this would have a negative impact on Americans’ pension and 401(k) holdings.”
Steven Kamin, director of the division of international finance at the Federal Reserve, backed up Dudley’s comments with equally dire testimony … continue reading
Looking for jobs in Knoxville? Contact us today for more information.