Home›Bonds & Rates›Economy›Tech price drops no longer shield inflation, raising F…

Tech price drops no longer shield inflation, raising Fed pressure

MarketWatch notes that the shift away from falling prices for computers, phones and other high tech goods could complicate the Fed’s path to keeping inflation low.

Reported · Written up by our desk · Economy

MarketWatch says the Federal Reserve may face added inflation pressure because the prior tailwind from falling prices for computers, cell phones and other high-tech items is no longer showing up.

The outlet frames the change as a factor that could keep inflation stickier than in the past, increasing the likelihood that the Fed would need to consider higher interest rates.

The Fed’s outlook, according to the report, hinges on whether that high-tech deflation trend returns or continues to weaken.

More like this

Sources