We should welcome financial innovation as a positive force that can increase access and lower costs for individuals and businesses. That said, innovation can also introduce new risks for consumers. We have already seen occasions when uses of new technologies and data can raise serious concerns about violations of fair lending laws.
The famous classical Phillips curve that captures the trade-off between stabilizing inflation and controlling unemployment was criticized by Phelps and Friedman in the late 1960s. They argued that if inflation expectations react to changes in actual inflation, then any trade-off between inflation and unemployment would be short-lived at best.