Moreover, available surveys suggest that the recent uptick in total and core inflation has not materially affected expectations of inflation over the longer term. This stability of long-term inflation expectations is evident in the Survey of Professional Forecasters, conducted by the Federal Reserve Bank of Philadelphia, and in the median expectations of households responding to the University of Michigan survey.
Against this backdrop of innovative technologies combined with financial services to form what we call "digital finance", regulators and supervisors are responsible for ensuring the smooth functioning of the markets within their respective mandates and for safeguarding financial stability. Innovation can bring about major changes in the way businesses operate. However, these changes may create new risks or amplify existing ones.