Amazon’s Plans to Cut Food Prices Will Be a Headache for the Fed
Fed's George Sees Another 2017 Hike Despite Low Inflation
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Amazon’s plans to cut prices at Whole Foods is great news for shoppers, but not so much for Federal Reserve officials wondering whether they’ll ever hit their 2 percent inflation target.
A low unemployment rate is supposed to boost inflation, or so the economic theory goes. One possible reason it’s not happening, according to the minutes of the central bank’s latest meeting in July: “Restraints on pricing power from global developments and from innovations to business models spurred by advances in technology.”