The Federal Reserve’s statement did note, though, that the case for an increase in the federal funds rate had strengthened. Another area that continues to be watched closely is the unfolding transition in the economy of our largest trading partner, China.
The recovery has strengthened and broadened across sectors and countries and the balance of risks is within a whisker of being called balanced. Growth of GDP per capita was in fact higher in the euro area last year than in any other major advanced economies in the G7. And unemployment has declined to 9.5% in February 2017, the lowest level since May 2009.