Fed’s Evans is worried about the deflationary impact of Amazon-Whole Foods deal

Amazon’s take over Whole Foods led to a sell-off in the grocery stocks on Friday as investors feared the move would spark a price war. 

Speculation gathered pace that it would push down inflation, which is apparently good news for consumers, but bad news for Fed officials aiming to push inflation to 2%. 

Chicago Federal Reserve President Charles Evans, while talking to reporters about the market reaction said, “That normally indicates that somebody things that they are not going to be earning as much as they were”. 

He added, “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”. 

It is quite clear the central bank is worried about the deflationary impact of the deal.