Federal Reserve Chairman Jerome Powell believes Amazon played a role in keeping a lid on inflation over the past decade.
The central banker was asked why inflation has been so low since the financial crisis.
“It’s a global phenomenon. We don’t perfectly understand it. Since the [financial] crisis, a big factor that has been weighing down inflation is just the weakness in the economy. You had a lot of slack and the economy has not been tight,” Powell said Thursday during his testimony to Senate Banking Committee.
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“There are other stories. There’s the Amazon effect story. There’s global slack. The idea that slack around the word is affecting the tightness of the U.S. labor market. [It’s] really hard to tie those down from an empirical standpoint, but they may be having some sort of an effect on inflation,” he said.
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