As policymakers, we need to take in how far-reaching those ripples are going to be. Monetary Policy The adjustments to monetary policy we made this year were designed to balance maintaining a strong U.S. economy with slowing global growth, and provide insurance against ongoing and potential future risks. And that’s what they’ve done. The economy is in a good place, and monetary policy is as well. My forecast is for moderate GDP growth, the labor market remaining strong, and inflation moving back to our symmetric 2 percent target. Of course, things can change. Data dependency remains our motto, and if there were a material change to this outlook, we would adjust monetary 3/4  BIS central bankers' speeches  policy in support of our goals of maximum employment and price stability. Conclusion I’ll conclude with this. John Donne’s words are perhaps more relevant in 2019 than they were in 1624. No man is an island, and no economy can insulate itself—for better or worse—from the fortunes of its neighbors. At the same time, all economies are having a common experience as a result of longer-term structural changes. Shifts in demographics and productivity growth point clearly in the direction of low neutral interest rates and slowing growth. We’re seeing the reality of these changes in the form of sluggish inflation and interest rates much lower than in previous decades. Central banks and policymakers around the world need to prepare for economies that are more connected than ever before. I’ll now take your questions.

Earning the trust of the Gen Y market, and offering them a unique product or service, will no doubt be the biggest and most important challenge for the financial advisory profession of today if it is to remain relevant tomorrow. This leads me to the second major challenge facing the industry, that is the digital revolution. Less than a decade ago, digital investment platforms and robo-advisors were barely heard of. Today, they form a booming global industry, with a projected asset growth worldwide of 68% by 2020 – amounting to USD2.2 trillion. Recently, a private wealth management company based in Labuan launched the first ever Shariah-compliant robo-advisor in Asia. Fueled by technological advancements, robo-advisors are capable of completing tasks such as fact-finding and calculation of risk profiles much quicker and at a much cheaper cost. Third, increasing financial complexity. Over the years, financial institutions have introduced many innovative products to serve various needs and risk appetites. Yet, a nation-wide survey commissioned by Bank Negara Malaysia reveals that financial literacy remains relatively low in Malaysia. Even the most sophisticated consumers suffer from “choice fatigue” from the vast array of financial products that are available in the market. An opportunity thus exists for financial advisers to help consumers address these challenges by conceptualizing and packaging recommendations in a manner that would be at once holistic and digestible. With a new paradigm looming on the horizon, financial advisors must reinvent through innovative business models, new delivery channels, and an openness to continuous learning.