In December, the FOMC anticipated that inflation would remain low in the near term due to the drag from lower prices for energy and imports. But as those transitory effects faded, the Committee expected inflation to move up to 2 percent over the medium term, provided the labor market improves further and inflation expectations are stable.
Banks domiciled in countries that opt to join will enjoy the reputational gains from being subject to the same supervisory standards as their euro area peers, which might for instance dampen risk premiums on their debt. Obviously, this might encourage a number of Central, Eastern and Southeastern European countries which are not (yet) part of the euro area to join banking union.