risks. in that spirit, the federal reserve is also in the process of developing an enhanced quantitative surveillance program for large bank holding companies. supervisory information will be combined with firm - level, market - based indicators and aggregate economic data to provide a more complete picture of the risks facing these institutions and the broader financial system. making use of the federal reserve ’ s unparalleled breadth of expertise, this program will apply a multidisciplinary approach that involves economists, specialists in particular financial markets, payments systems experts, and other professionals, as well as bank supervisors. the recent crisis has also underscored the extent to which direct involvement in the oversight of banks and bank holding companies contributes to the federal reserve ’ s effectiveness in carrying out its responsibilities as a central bank, including the making of monetary policy and the management of the discount window. most important, as the crisis has once again demonstrated, the federal reserve ’ s ability to identify and address diverse and hard - topredict threats to financial stability depends critically on the information, expertise, and powers that it has by virtue of being both a bank supervisor and a central bank. the federal reserve continues to demonstrate its commitment to strengthening consumer protections in the financial services arena. since the time of the previous monetary policy for further information, see board of governors of the federal reserve system ( 2009 ), " federal reserve issues proposed guidance on incentive compensation ”, press release, october 22. report in july, the federal reserve has proposed a comprehensive overhaul of the regulations governing consumer mortgage transactions, and we are collaborating with the department of housing and urban development to assess how we might further increase transparency in the mortgage process. 8 we have issued rules implementing enhanced consumer protections for credit card accounts and private student loans as well as new rules to ensure that consumers have meaningful opportunities to avoid overdraft fees. 9 in addition, the federal reserve has implemented an expanded consumer compliance supervision program for nonbank subsidiaries of bank holding companies and foreign banking organizations. 10 more generally, the federal reserve is committed to doing all that can be done to ensure that our economy is never again devastated by a financial collapse. we look forward to working with the congress to develop effective and comprehensive reform of the financial regulatory framework. for further information, see board of governors of the federal reserve system ( 2009 ), " federal reserve proposes significant changes to regulation z ( truth in lending ) intended to improve the disclosures consumers receive in connection with closed - end mortgages and home - equity lines of

it is necessary to restore the flexibility and adaptability of japan ’ s economy and unlock its potential, and thereby raise firms ’ and households ’ growth expectations. in my view, now is the “ window of opportunity ” toward overcoming deflation. there is a prospect that the u. s. and the chinese economies, which have substantial effects on japan ’ s economy, will return to the recovery path. against such a backdrop, as i mentioned earlier, the possibility of japan ’ s economy, which has been stagnant since last year, to return to the moderate recovery path toward the middle of the year has been increasing. also, in our outlook for economic activity and prices, the possibility for the year - on - year rate of change in the cpi excluding volatile food to reach 1 percent in 2014 has gradually come in sight. under such changes, if the inflation rate actually rises, people ’ s inflation expectations are also likely to increase. we should not miss this “ window of opportunity. ” based on such line of thinking, the bank has further enhanced its past line of policy of “ setting a goal at 1 percent for the time being ” and set 2 percent as the “ price stability target. ” under the target, the bank will pursue monetary easing aggressively and aim to achieve the target at the earliest possible time. with regard to such monetary policy conduct of the bank, we have sometimes been asked whether the bank has adopted the so - called “ inflation targeting. ” in that regard, looking at the monetary policy conduct of other countries which have actually adopted “ inflation targeting, ” for example, the united kingdom, the bank of england conducts flexible monetary policy which takes into account not only developments in prices but also those in other areas, including the real economy and asset prices. the bank ’ s decision this time of “ price stability target ” is the same as the one many central banks are currently adopting, and it is generally called “ flexible inflation targeting. ” within such monetary policy framework the bank intends to make as decisive policy responses as ever while steadily examining the situation of economic activity and prices. introduction of “ open - ended asset purchasing method ” next, how to pursue aggressive monetary easing. in particular, let me explain the newly introduced “ open - ended asset purchasing program. ” the bank will pursue aggressive monetary easing, aiming to achieve the “ price stability target, ” through a virtually zero interest rate policy and purchases of financial assets, as long as the bank judges it appropriate to continue with each policy