Philadelphia Federal Reserve Bank President Charles Plosser said Monday that people in the United States have no need “to get all in a dither” over Europe’s debt crisis, according to a report.
Plosser told The Wall Street Journal he feels that Europe’s economic problems could even benefit the U.S. in the short term. It is “not an unreasonable argument,” he said, that low U.S. interest rates and gas prices in response to the uncertainty in Europe’s financial situation could offset any potential difficulties for the American economy.
“There’s absolutely no reason for people in the United States to get all in a dither,” Plosser said, according to the Wall Street Journal.
Plosser said Europe “is just throwing a lot of noise into the system right now. It makes reading the tea leaves particularly difficult right now.” He noted, however, that a “flood of liquidity” into the U.S. seems much more likely than investors running from U.S. financial institutions.
But, he added, the Fed will be able to deal with any fallout from Europe’s economic troubles.
“I think we have the tools at our disposal if they become necessary,” he told the Journal.