In support of our dual objectives of maximum employment and price stability, the Federal Reserve has maintained a highly accommodative monetary policy stance since the financial crisis; this policy has fostered the marked improvement in labor market conditions that we have seen and has helped check undesirable disinflationary pressures.
Specifically, (1) the U.S. economy continues to recover moderately against the backdrop of firm private demand, (2) the European economy has stopped weakening, and (3) the Chinese economy has been stabilizing. On the back of these factors and partly supported by developments in foreign exchange rates, exports have generally been picking up, albeit at a moderate pace.