How the booming labor market makes it harder for the Fed to tackle inflation

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The booming labor market is fantastic for workers. But it's also making the Fed's campaign to bring down inflation that much harder. Here's how.

with the Fed's engineered slowdown, the higher it will eventually need to push interest rates — and the more likely the central bank is to overdo things and cause an abrupt downturn.: Jobs are plentiful, and businesses have a robust appetite for new employees that are in short supply. The result is higher wages, which have actually risen faster than consumer prices in the last few months.

But the opposite is happening. The labor force shrank in November for a third straight month; employers keep adding to their payrolls en masse; and wage growth accelerated., well above the minimum of roughly 100,000 jobs needed to keep pace with population growth. Any workers who are getting laid off are finding new jobs quickly. The median duration of unemployment is 8.4 weeks, shorter than the 9.7 weeks before the pandemic.news of the November jobs report: Average hourly earnings for private-sector workers rose 0.6%, and wage gains for September and October were revised upward.

 

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'How corporate greed makes it harder for the Fed to tackle Inflation.' There, I fixed your headline for you Axios.

“The real problem here is people having jobs” - The Fed

this is so cringe

You continue to promote lies..

When the “problem” is healthy wages for working & middle class earners, rather than fair share taxation and price-gouging, economics academia is being managed by the wrong people.

Notice —any nickel that goes into the pocket of ordinary folk is omg—INFLATIONARY. Any dollar on up that goes to the wealthy? Oh. That’s a perfect path.

Maybe you should start labeling it accurately- CORPORATE GREED. Interest rates won't fix that.

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