It’s time for the Federal Reserve to join the 21st century.For years, the central bank has lamented that inflation is running below the 2 percent level desired by its antiquated model.
Last week, Fed chief Jerome Powell said in the latest Fed board minutes that the bank ties future rate hikes to inflation, which has stayed low for years and remains in a comfortable zone for the Fed, despite a strong, growing economy that produced 300,000 jobs in each of the last two months.
You could almost hear the incredulity generated by his comments, since he is relying on outdated models.Today’s economy is dominated by technological innovation and efficiencies. Just ask the taxi driver displaced or earning less due to Uber and Lyft.
Or query the consumer, who saves money and gets a better experience.Look at companies like Walmart and Amazon, which millions of Americans turn to daily to buy items online — and for competitive prices.