Europe's debt crisis is a threat for US recovery, Tarullo claims

According to Thursday announcement of Fed Board Governor Daniel Tarullo, current Europe's debt crisis provides risks to economic recovery of the US. 

He explained this fear by that both financial market stresses and damage to international trade are jeopardizing for US recovery.

In proposition, prepared for delivery before two congressional subcommittees, Tarullo stated "If sovereign problems in peripheral Europe were to spill over to cause difficulties more broadly throughout Europe, US banks would face larger losses on their considerable overall credit exposures."

Tarullo argues that while Europe's problems must be resolved by the authorities there, the potential implications for the US are not insignificant.