Tuesday, December 12, 2017

As the Fed Deliberates, Amazon Is Making Its Job More Difficult

Pradnya Haldipur checks prices on Amazon while her daughter Mirza-Cate, 5 years old, paints at the family home in Silver Spring, Md. Holiday shoppers with smartphones can retrieve instant price comparisons that make bargain hunting easier—and the Federal Reserve’s job tougher.

Web-driven comparison shopping complicates Fed decisions on how much and how fast to raise interest rates. Consumer knowledge is keeping a lid on prices that retailers can charge on a wealth of goods, a small but growing factor holding down inflation in the U.S., Japan and other advanced economies. . . . more

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