Today, the latest sign that China has come to the global economic power is that it upsets the financial markets enough to nudge the Federal Reserve away from the raising interests.  

As Bloomberg stated, Federal policy makers have left their benchmark rate near zero on Sep. 17, Thursday. Meaning, the United States inflation and economy may be restrained by the recent global financial and economic developments.

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Federal Chair, Janet Yellen, explained in a press briefing that the financial turmoil reflected the investor concerns about risks to the growing Chinese economy. In addition, Mickey Levy-the chief economist for the Asia and America at Berenberg in New York-has stated, "If it weren't for China and all the turmoil surrounding China, I think the Fed would have hiked rates." Levy has analyzed the Federal policy for 30 years now.

Currently, China has already affected the world more than ever before. Its influence over the global markets will only just increase as it approaches the United States economy in terms of size. It has accounted for 13.3 percent of global gross domestic product in 2014, from less than 5 percent a decade ago.

The country of China has become the big part of the global economy, David Loevinger added. He was the former China specialist at the U.S. Treasury who now works as an analyst in Los Angeles. He also stated that China is going to have a huge effect on other countries' economies and monetary policies.

Yellen has admitted in the press conference that policy makers are focused on China, and it is not clear yet how its economy will rapidly cool down and if its government can manage the slowdown.

With the inflation persistently below target, this gave the Federal policy makers a reason to wait until it will reach the objective, which is to drop down the jobless rate.

According to Livemint, the U.S. economic data might look good but its path ahead that matters, and right now risks are present in the outlook.

TagsFederal policy makers, us inflation, Federal Reserve, economic data