“In the labor market, demand for workers far exceeds the supply of available workers, and nominal wages have been growing at a pace well above what would be con

“In the labor market, demand for workers far exceeds the supply of available workers, and nominal wages have been growing at a pace well above what would be consistent with 2 percent inflation over time. Thus, another condition we are looking for is the restoration of balance between supply and demand in the labor market.” https://www.federalreserve.gov/newsevents/speech/powell20221130a.htm https://www.federalreserve.gov/newsevents/speech/powell20221... A greater supply of workers relative to current inflation is only possible if more people are made unemployed, forced out of retirement, or there are massive changes to immigration policy. And historically, rapidly raising interest rates always results in the first.