Fed's Tarullo: global downside risks are policy factor

Reuters News
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Posted: Oct 11, 2014 9:45 AM

WASHINGTON (Reuters) - Federal Reserve Governor Daniel Tarullo on Saturday cited downside risks to the global economy as a factor that U.S. monetary policy would need to take into account even as the American economy recovers.

"I am worried about growth around the world, there are more downside risks than upside risks," Tarullo said at a conference.

"Other major economies are tilting or at least showing risks that are a little bit more to the downside than to the upside and this is obviously something we have to think about in our own policies," he said.

Tarullo also said that a lack of aggregate demand may be related to growing income inequality.

(Reporting by Douwe Miedema and Howard Schneider; Editing by Paul Simao)