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>The head of the Federal Reserve has been very clear that he considers wage growth to be the principal contributor to inflation This is not what he said, and d

by Aunche 3y ago

>The head of the Federal Reserve has been very clear that he considers wage growth to be the principal contributor to inflation This is not what he said, and despite putting it in quotes, he never said that he was "combatting wage growth". Even if he was, it doesn't matter because regardless of the source of inflation, the only thing that the Fed can do to control it is to raise interest rates. By the time the Fed did so, inflation was already outpacing wage growth, so the narrative that a worker revolution is just around the corner that the Federal Reserve wanted to suppress is completely unfounded.

DangitBobby 3y ago
It's pretty close to what he said. > The chairman of the U.S. Federal Reserve, Jerome Powell, said his goal is “to get wages down.” > In a press conference on May 4, Powell announced that the Fed would be raising interest rates by half a percentage and implementing policies aimed at reducing inflation in the United States, which is at its highest level in 40 years. > According to a transcript of the presser published by the Wall Street Journal, Powell blamed this inflation crisis, which is global, not on the proxy war in Ukraine and Western sanctions on Russia, but rather on U.S. workers supposedly making too much money. > “Employers are having difficulties filling job openings, and wages are rising at the fastest pace in many years,” Powell complained. > The Fed’s proposed solution: bring down wages. > There are more job vacancies than there are unemployed people in the United States, as the economy recovers from the Covid-19 pandemic. > Powell claimed this discrepancy between job vacancies and unemployment is due to high wages, which discourage workers from taking bad, low-paying jobs with few benefits, and therefore give them too much power. 1. https://mronline.org/2022/05/26/u-s-federal-reserve-says-its-goal-is-to-get-wages-down/ https://mronline.org/2022/05/26/u-s-federal-reserve-says-its... So yes, apparently workers are getting a bit uppity and it's time to put them back into place.
- dragonwriter 3y ago
  > The Fed’s proposed solution: bring down wages. Its too bad that Powell directly says in the press conference this characterizes that they believe and intend for the outcome to be continued rapid wage growth: https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20220504.pdf https://www.federalreserve.gov/mediacenter/files/FOMCprescon... “So we think through our policies—through further healing in the labor market, higher rates, for example, of vacancy filling and things like that, and more people coming back in—we’d like to think that supply and demand will come back into balance and that, therefore, wage inflation will moderate to still high levels of wage increases, but ones that are more consistent with 2 percent inflation. That’s our expectation.”
- Aunche 3y ago
  A bunch of accusations that references a few cherry-picked quotes that was written by an author who regularly parrots Russian propaganda [1] isn't exactly a trustworthy source. [1] https://geopoliticaleconomy.com/2022/02/20/west-ukraine-crisis-sanctions-russia/ https://geopoliticaleconomy.com/2022/02/20/west-ukraine-cris...

by Aunche 3y ago

DangitBobby 3y ago

It's pretty close to what he said. > The chairman of the U.S. Federal Reserve, Jerome Powell, said his goal is “to get wages down.” > In a press conference on May 4, Powell announced that the Fed would be raising interest rates by half a percentage and implementing policies aimed at reducing inflation in the United States, which is at its highest level in 40 years. > According to a transcript of the presser published by the Wall Street Journal, Powell blamed this inflation crisis, which is global, not on the proxy war in Ukraine and Western sanctions on Russia, but rather on U.S. workers supposedly making too much money. > “Employers are having difficulties filling job openings, and wages are rising at the fastest pace in many years,” Powell complained. > The Fed’s proposed solution: bring down wages. > There are more job vacancies than there are unemployed people in the United States, as the economy recovers from the Covid-19 pandemic. > Powell claimed this discrepancy between job vacancies and unemployment is due to high wages, which discourage workers from taking bad, low-paying jobs with few benefits, and therefore give them too much power. 1. https://mronline.org/2022/05/26/u-s-federal-reserve-says-its-goal-is-to-get-wages-down/ https://mronline.org/2022/05/26/u-s-federal-reserve-says-its... So yes, apparently workers are getting a bit uppity and it's time to put them back into place.

dragonwriter 3y ago
> The Fed’s proposed solution: bring down wages. Its too bad that Powell directly says in the press conference this characterizes that they believe and intend for the outcome to be continued rapid wage growth: https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20220504.pdf https://www.federalreserve.gov/mediacenter/files/FOMCprescon... “So we think through our policies—through further healing in the labor market, higher rates, for example, of vacancy filling and things like that, and more people coming back in—we’d like to think that supply and demand will come back into balance and that, therefore, wage inflation will moderate to still high levels of wage increases, but ones that are more consistent with 2 percent inflation. That’s our expectation.”
Aunche 3y ago
A bunch of accusations that references a few cherry-picked quotes that was written by an author who regularly parrots Russian propaganda [1] isn't exactly a trustworthy source. [1] https://geopoliticaleconomy.com/2022/02/20/west-ukraine-crisis-sanctions-russia/ https://geopoliticaleconomy.com/2022/02/20/west-ukraine-cris...