This would involve enhancing the ability of users of financial services to make discerning financial choices that best suit their needs, while increasing their confidence to take advantage of the new spectrum of channels and tools for financial management. This would result in better financial planning and more stable consumption patterns as well as the ability of individuals to better withstand the macroeconomic shocks that are now occurring more frequently in the global economic environment. Increased financial capability would also contribute towards evolving more inclusive financial systems and the broader financial stability. There is greater expectations on the potential for  BIS central bankers’ speeches  1  financial education to deliver improvements in responsible financial behaviour; encourage stronger market discipline and lift the poorest segments of society out of poverty in addition to helping communities adjust to the changing economic and financial conditions. The achievement of these outcomes will increasingly hinge on consumers of financial services being financially competent. Over the years, important progress has been made to provide the foundations on which enhanced financial capability can be built. These foundations include: (i) greater provision of truthful disclosures on financial products and services; (ii) expanded financial knowledge; (iii) an environment which is supportive of consumer choice, including the ability for consumers to exercise their preferences without impediments; and (iv) effective redress mechanisms. Policy makers, the private sector and market participants have a key role in building these foundations.

After this year’s spike in inflation related to the effects of the pandemic—and with inflation expectations and other measures of underlying inflation close to our 2 percent longer-run goal—I expect inflation pressures to moderate over time and for the inflation rate to come back to its underlying trend of around 2 percent next year. It goes without saying that there is still a great deal of uncertainty about the inflation outlook, and I will be watching the data closely in the coming months. North Country I’ve spoken at great length about the outlook for the U.S. economy as a whole. While people’s experiences are influenced by the macro outlook, the local economy often plays a very important role in shaping their economic opportunity. At the beginning of this speech, I referred to the Federal Reserve System’s Second District, which is the region the New York Fed is responsible for. This area includes New York State, parts of New Jersey and Connecticut, Puerto Rico, and the U.S. Virgin Islands. To better understand the state of the economy and economic growth here, I’ve spent a lot of time this week meeting with North Country business leaders, community organizers, and elected officials. Much of what emerged from these conversations reflects the unique aspects of the North Country economy, which suffered outsize job losses at the onset of the pandemic and continues to experience a reduction in tourism owing to border closures. This area, like many across the Second District and around the country, has its challenges.