His personal research has focused on measuring the effects of monetary policy on U.S. economic activity, inflation and financial market prices.

U.S. military activity ceased on the island after 2002 while tropical research continues in a separate facility located just east of the former communications facility.

Bahrain has provided a base for U.S. naval activity in the Persian Gulf since 1947.

The island also houses a large signals intelligence facility which tracks U.S. activity in the area and monitors traffic from commercial communications satellites.

Another factor was Danish sensitivity to U.S. activities.

"Prodigy will be part of our thinking in our U.S. activities," he said.

Beyond the U.S. activities the European countries generally lag by 10 to 20 years.

"Changes in global short rates lead U.S. economic activity pretty consistently by 12 months," she said.

If Congress permits U.S. military activity in a region, he said, it cannot limit the commander's discretion to send troops into this country or that.

Congress could usefully give the Fed additional authority to look into all foreign banks' U.S. activities.