The Fed's Problem With the Job Market

[Warpy]

8. Are they really that pig ignorant?

That's a rhetorical question, of course they are.

The truth is that wages have been depressed for a very long time, mostly as a function of demographics that had 10 Boomers applying for every decent job and the ignorance of rich men who didn't want to pay labor costs cutting their own throats as demand dried up.

In addition, wages are a lagging indicator, reflecting inflation rather than causing it. Surely those jokers know that, at least.

I suppose they're terrified better paid workers will lock in this last inflationary spike. While that will be true in the short term, competition will overtake the lust for profiteering as the main corporate motivation.

America has needed a raise, a big one, for decades. The cloistered twits at the Fed need to know this and that starving labor has not ended inflation, it has continued every single year no matter what wages have done.