[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-323829-105":59,"doc-detail-323829-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","global-risks-to-us-monetary-policy-the-biggest-risk-may-15-2007","Global Risks to U.S. Monetary Policy - The Biggest Risk - May 15, 2007","","Global Risks to U.S. Monetary Policy analyzes how international developments affect the Federal Reserve’s dual mandate of price stability and maximum sustainable economic growth. It argues that persistent U.S. current account deficits create large net financial claims held by the rest of the world, which could drive a “hard-landing” adjustment of the dollar and a rise in real interest rates. A panel discussion in 2007 highlights differing economist views on whether the adjustment would be disruptive or orderly.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/global-risks-to-us-monetary-policy-the-biggest-risk-may-15-2007/323829/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/global-risks-to-us-monetary-policy-the-biggest-risk-may-15-2007/323829.png","ImageObject",300,407,{"name":92,"@type":93},"Patrick","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-09-23","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":14},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What does the Federal Reserve’s dual mandate require, according to the document?","Question",{"text":112,"@type":113},"It must maintain price stability and promote maximum sustainable economic growth. The document notes that members interpret this in terms of U.S. inflation and growth while tracking global events that can interfere with domestic objectives.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What is identified as the biggest international risk to U.S. monetary policy?",{"text":117,"@type":113},"A rapid, broad-based “hard-landing” adjustment to global imbalances, involving a depreciation of the dollar and higher domestic real interest rates, which could complicate monetary policy.",{"name":119,"@type":110,"acceptedAnswer":120},"How do economists explain possible outcomes of global imbalances?",{"text":121,"@type":113},"Economists split between hard-landing views, where foreigners’ willingness to finance the deficit may wane and adjustment could be disruptive, and soft-landing views, where deficits and surpluses reflect normal market outcomes and adjustment is more orderly.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},323829,1790169265,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":14,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144},549758146520,"https://ap-avatar.wpscdn.com/avatar/80002397d8c0411e94?_k=1775819394049821470","by Owen F.Humpage  \nCongresshas given the FederalReserve System a dual policy man-date:maintain price stability and pro-mote maximum sustainable economicgrowth.The Federal Open MarketCommittee interprets its charge solelyin terms of inflation and economicgrowth within the United States,but itsmembers understand that global eventscan easily interfere with the System'sability to achieve its domestic objec-tives.Consequently,they continuouslywatch international developments andassess the risks that these changes poseto the attainment of their dual mandate.  \nAs part of this assessment process,theFederal Reserve Bank of Clevelandrecently invited four experts to discussglobal developments and to help usidentify and understand the risks thatthese developments present for U.S.monetary policy.Our experts wereKathryn Dominguez from theUniversity of Michigan,Charles Engelfrom the University of Wisconsin,Kenneth Kuttner from Oberlin College,and Brad Setser from Roubini GlobalEconomics.Our discussions were broadin scope,ranging from trade issues tofinancial market regulations.This Eco-nomic Commentary develops a keymacroeconomic concern that emergedfrom our conversations.Instead ofattempting to attribute specific pointsto individuals,this article reflects thecollection of viewpoints that theyexpressed.Arguably,their perspectivesencompass the opinions of most econo-mists on the issues discussed here.  \n# ■ The Biggest Risk\n\nAccording to our panel,the biggestinternational risk to U.S.monetarypolicy is the prospect ofa \"hard-landing”adjustment to global imbal-ances,one consisting of a rapid,  \n# Global Risks to U.S.Monetary Policy\n\nbroad-based depreciation of the dol-lar and a rise in domestic real inter-est rates.The adjustment process—depending on how rapidly it mightunfold—could easily complicate mon-etary policy.This would be especiallytrue if it occurred when the Systemneeded to ease monetary policy in theface of softening domestic demandand if the central banks of other majordeveloped countries were simultane-ously tightening their monetary poli-cies;under these two circumstances,domestic policy might actually acceler-ate the adjustment process and hardenthe landing.  \nThe key characteristic of global imbal-ance is persistent U.S.current accountdeficits.Since 1982,the United Stateshas experienced a deficit every yearbut one,primarily because we importmore goods and services than weexport(see figure 1).Last year,theU.S.current account deficit reached arecord S811.5 billion,or 6.I percent ofGDP,and most observers anticipate lit-tle if any sustained improvement in theforeseeable future.  \nThe United States pays for its deficitsby issuing financial claims,such ascorporate stocks and bonds,govern-ment securities,and bank accounts,tothe rest of the world.As a consequenceof our persistent deficits,the worldnow holds approximately $3.5 trillionin net financial claims on this country(see figure 2).Because they essentiallyare entitlements to future U.S.output,we often gage our ability to servicethese financial claims by expressingthem as a percentage of GDPLastyear,the world's net financial claimsagainst the United States equaled arecord 26.5 percent of GDP.  \nMay 15,2007  \nWe recently invited four internationaleconomists fu the Federal ReserveBank of Cleveland to discuss globaldevelopments and to help us identifyand understand the risks that thesedevelopments present for U.S.mon-etary policy.This Commentary devel-ops a key macroeconomic concernthat emerged from our conversations.  \nMost economists insist that thesefinancial claims cannot rise indefinitelyrelative to our ability to pay.At somepoint,the world's savers will becomeincreasingly reluctant to add dollar-denominated assets to their portfolioswithout receiving a premium for thegrowing risks associated with doing so.Some may even begin to diversify outof dollar-denominated assets.When thishappens,the dollar will depreciate inthe foreign exchange market and U.S.real interest rates will ri","cbCaitj4MRXb4qCP","https://ap.wps.com/l/cbCaitj4MRXb4qCP","pdf",1064100,"English","# The Biggest Risk\n## Global Risks to U.S. Monetary Policy","[{\"question\":\"What does the Federal Reserve’s dual mandate require, according to the document?\",\"answer\":\"It must maintain price stability and promote maximum sustainable economic growth. The document notes that members interpret this in terms of U.S. inflation and growth while tracking global events that can interfere with domestic objectives.\"},{\"question\":\"What is identified as the biggest international risk to U.S. monetary policy?\",\"answer\":\"A rapid, broad-based “hard-landing” adjustment to global imbalances, involving a depreciation of the dollar and higher domestic real interest rates, which could complicate monetary policy.\"},{\"question\":\"How do economists explain possible outcomes of global imbalances?\",\"answer\":\"Economists split between hard-landing views, where foreigners’ willingness to finance the deficit may wane and adjustment could be disruptive, and soft-landing views, where deficits and surpluses reflect normal market outcomes and adjustment is more orderly.\"}]","Global Risks to U.S. Monetary Policy - The Biggest Risk - May 15, 2007 | PDF",1789966297,13]