According to a BlckRock Bond Manager, Americans' love of their smartphones and apps may be contributing to the sluggish pace of inflation that is worrying both Wall Street and the Fed. Consumers are buying less devices such as cameras, radios and televisions and firms like Amazon have enticed consumers with convenience and low prices.
On Monday, Chicago Federal Reserve President Charles Evans, when asked about Amazon's proposed $13.7 billion buyout of up-market grocer Whole Foods Market Inc at an event in New York, said new competitors with a technological edge entering in major industries pose possible long-term implications that inflation will remain low. Some of the recent pullback in inflation also stemmed from lower energy prices resulting from global oversupply, analysts said. The recent softening of inflation has raised speculation on the timing on the U.S. central bank's next rate increase. A few policymakers including Evans have said it may be worthwhile for the Fed to wait until year-end before considering another rate hike.