. in coordination with other agencies, we have made significant progress on the key substantive issues relating to the volcker rule and are hoping to complete it by year - end. finally, the federal reserve is preparing to regulate and supervise systemically important nonbank financial firms. last week, the financial stability oversight council designated two nonbank financial firms ; it has proposed the designation of a third firm, which has requested a hearing before the council. 4 we are developing a supervisory and regulatory framework that can be tailored to each firm ’ s business mix, risk profile, and systemic footprint, consistent with the collins amendment and other legal requirements under the dodd - frank act. thank you. i would be pleased to take your questions. see daniel k. tarullo ( 2013 ), “ dodd - frank implementation, ” statement before the committee on banking, housing, and urban affairs, u. s. senate, july 11 ; and board of governors of the federal reserve system ( 2013 ), “ federal reserve board approves final rule to help ensure banks maintain strong capital positions, ” press release, july 2. see board of governors of the federal reserve system, federal deposit insurance corporation, and office of the comptroller of the currency ( 2013 ), “ agencies adopt supplementary leverage ratio notice of proposed rulemaking, ” joint press release, july 9. u. s. department of the treasury ( 2013 ), “ financial stability oversight council makes first nonbank financial company designations to address potential threats to financial stability, ” press release, july 9. bis central bankers ’ speeches

fixed investment intended to promote labor saving and expand production capacity. according to the bank's march 2018 tankan ( short - term economic survey of enterprises in japan ), the diffusion index for business conditions for all industries and enterprises improved for the seventh consecutive quarter, reaching the highest level since 1991. 1 business fixed investment plans for all industries and enterprises, including financial institutions, showed a relatively strong year - on - year increase of 4. 3 percent for fiscal 2017 and 2. 0 percent for fiscal 2018. let us turn to the household sector. labor market conditions have tightened steadily as the number of employees has increased. the active job openings - to - applicants ratio has surpassed the peak level observed during the bubble period. the unemployment rate is 2. 5 percent, a level that essentially represents a situation close to full employment. firms are making active efforts to secure their labor force while expanding the scope of workers who may be employed and are promoting a shift from non - regular to regular employment. wages of part - time employees, which are responsive to labor market conditions, have risen markedly. although wages of regular employees - - the majority of employees - - have continued to increase only moderately, there are signs of gradual yet stronger improvement in wages. for example, the growth in base pay in fiscal 2018 is projected to exceed the actual growth of a year earlier, as in the previous year, and the share of firms raising wages the diffusion index for business conditions is calculated as the proportion of firms responding that business conditions were " favorable " minus the proportion of those responding that they were " unfavorable. " of regular employees is growing. with the employment and income situation improving, as i have mentioned, private consumption also has been increasing moderately. c. outlook for japan's economy as for the outlook, japan's economy is likely to continue its moderate expansion, supported by the highly accommodative financial conditions and stimulative fiscal measures. in line with the firm growth in overseas economies, exports are likely to maintain their increasing trend. as a virtuous cycle operating from income to spending is being maintained in both the corporate and household sectors, business fixed investment and private consumption are also likely to follow an uptrend. i believe that the impact of the consumption tax hike scheduled for 2019 is highly uncertain, yet most likely to be smaller than the impact of the tax hike in 2014. at the time of the previous consumption tax hike, the last - minute rise in demand before the