Fed official in effect says that competition and lower prices for consumers are bad for the economy and must be offset by Fed policy!

Yeah, I mean who wants lower prices and a higher standard of living anyway right? Screw that. We want higher prices and less for each dollar we earn. That’s much better.

(From Bloomberg)

“For me, it just seems like technology keeps moving, it’s disruptive, and it’s showing up in places where — probably nobody thought too much three years ago about Amazon merging with Whole Foods,” he said.*

Evans, a voter on the Federal Open Market Committee this year who supported its decision to raise interest rates last week, says he is less confident than most of his colleagues that inflation will soon rise to their 2 percent target.

A big reason for his ambivalence: Deflationary competitive pressures could have become more important for the overall trend in prices than the so-called Phillips Curve relationship, which links inflation to the state of the labor market. That model, coined almost 60 years ago, is the basis for the Fed’s outlook for continued gradual rate increases…

…“I can’t say that the Phillips Curve isn’t going to lead to higher inflation, but I worry that it’s very flat and it’s not going to,” he told reporters Monday. “It’s still very early in this process.”

Say it with me:

Deflation isn’t necessarily, and typically isn’t a bad thing.

Now only the Fed officials in the back.

Click here for the article.

*Really? I can remember my father, a Navy electrical engineer, saying that he thought things like this would happen 30 YEARS ago.