Publication

The United States has strong economic ties to Europe, and many analysts view the Eurozone crisis as the biggest potential threat to the US economic recovery. US Treasury officials have emphasized that US exposure to the Eurozone countries under the most market pressure is small but that US exposure to Europe as a whole is significant. Recently, the euro has fallen against the dollar; a weaker euro against the US dollar could cause the US trade deficit with the EU to widen. Uncertainty in the Eurozone is creating a "flight to safety," causing US Treasury yields to fall, and volatility in the US stock market. Additionally, the US looks to Europe for partnership in addressing a range of global challenges.