The Fed’s Problem With the Job Market

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Heard on the Street: While Fed officials worry that rising wages will lock the economy into a high-inflation regime, how great is the risk of that happening?

Federal Reserve officials worry that rising wages will lock the economy into a high-inflation regime. The question facing policy makers is how much of a risk of that happening there actually is.

Fed policy makers seem all but certain to raise their target range on overnight rates by three-quarters of a percentage point when they meet this week, but the focus has already moved to what they will do next. On the one hand, inflation is still running hot, with the Fed’s preferred measure of inflation showing consumer prices were 6.2% higher than a year earlier as of September.

 

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Pretty high unless the Administration puts Americans ahead of popularity. In the 70s and early 80s wages spiraled up. We need responsible Government spending!

The FEDS problem is raising interest rates when they should be cleaning up price gouging.

If paying people who work enough to live is the problem then they need to get their big brains into some other plan because that can’t sound right to any normal thinking person.

Shouldn’t we talk about the exorbitant income and wealth growth at the top and how real wages for the middle and low wage workers have diminished over time? We need a balance-don’t blame inflation on some minimal wage growth for the workers-that’s BS!

im always going to the bus stop and saying “While Fed officials worry that rising wages will lock the economy into a high-inflation regime, how great is the risk of that happening?”

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