So what does this assessment of the outlook imply for monetary policy? Since September 2012, when the last program of asset purchases was announced, there has been substantial improvement in the labor market outlook. Because the asset purchase program had fulfilled the FOMC’s stated objectives, the FOMC decided to end the program last month. At the same time, it still is premature to begin to raise interest rates – there remains slack in the labor market and the inflation rate is still too low. Hence, the last FOMC statement states: “The Committee anticipates, based on its current assessment, that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program this month.” But this sentence should not be viewed as an iron-clad commitment. As the statement goes on to say: “However, if incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated. Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated.” In other words, what the FOMC does going forward will depend on how the economy evolves, and how this affects the labor market and the inflation outlook. In considering the appropriate timing of lift-off, there are three important reasons to be patient.

Ernst and Young adoption index for 2017 highlights the impressive and rapid growth in adoption of fintech services among mature and developing markets with highest adoption rate among younger generations (25–34 years). On average, about 33% of digitally active consumers have used at least two fintech services in the last six months (compared to just 16% two years ago), with payments and money transfer being the most popular segments (used by 50% of digitally active consumers). Perhaps even more importantly, there is an increasing awareness: 84% of customers are aware of fintech services compared with 62%, two years ago. Thus, rising investments in fintech segment, as well as growing awareness and adoption of fintech services 1/4  BIS central bankers' speeches  indicates that fintechs are embraced and will continue to gain momentum in the future. Financial innovations change the environment not only for customers, but for traditional banking industry and policy makers, as well. Customers may benefit from increased and cost effective access to financial services, although in some instances at the cost of privacy and consumer protection. As for traditional financial institutions, such as banks, they may face strong competition by new entrants, on the one hand, but may benefit from increased cost efficiency, competiveness and ability to offer new state-of-the-art services, on the other hand. The impact on policymakers and regulators is also large, as they have to first properly understand innovations/new services, foresee possible consequences for financial intermediation and stability, and react in a timely and proper manner.