Right now, although the FOMC has a 2 percent inflation objective over the long run, it has not specified any time frame for achieving that objective. This lack of specificity suggests that appropriate monetary policy might engender inflation that is far from the 2 percent target for years at a time and thereby creates undue inflation (and related employment) uncertainty.
At the most basic level, the risks in financial inclusion are transactional, of smaller value and often specific to a target constituent. For the Philippines, the concern is the extent to which the financial inclusion portfolio can affect the banking system which is currently 100x its own size. The answer lies in the concept of contagion.