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> Powell will continue to raise rates until the labor market cools. This is entirely different from "complaining that the labor market is too tight." The Fed h
by Aunche 4y ago
> Powell will continue to raise rates until the labor market cools.
This is entirely different from "complaining that the labor market is too tight." The Fed has nothing against a tight labor market so long as we don't have high inflation. Imagine you're a doctor and you're telling your patient that you're going to administer chemotherapy to a child until either the cancer goes away or they get too sick. Then you see protestors trying to convince laymen that you're complaining that a child is experiencing too much cell growth. That's exactly what GP is doing.
- im-a-baby 4y agoThis seems unnecessarily pedantic. Powell has said he believes the tight labor market is driving inflation. It's a totally fair characterization to say "Powell believes the labor market is too tight" given his statements. In this case, "too tight" means "tight to the point of causing inflation"
- JumpCrisscross 4y ago> Powell has said he believes the tight labor market is driving inflation No, he has said nominal wage growth is driving inflation. Wages and unemployment are related but not the same thing.
- s1artibartfast 4y agoWhat do you think is driving nominal wage growth if not low unemployment?