Europe's woes are hurting U.S.: Fed's Williams

WASHINGTON (MarketWatch)
Developments from Europe's debt crisis already have had a negative impact on the U.S. economy, a top Federal Reserve official said Wednesday
In a speech in Bellevue, Wash., San Francisco Fed President John Williams said demand for U.S. exports has been cut, as the value of the dollar has risen and investors have flocked to the safety of Treasurys
Investors are also avoiding risky assets more generally, including U.S. stocks and corporate bonds
Lower stock prices and higher credit costs impact "the willingness and wherewithal" of U.S. consumers and businesses to spend, he added
The danger posed by the European crisis is one reason the economy might perform worse than expected, according to Williams
It is crucial for the Fed to maintain its easy monetary-policy stance and the central bank should also "stand ready to do even more if needed," he said