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Powell Asked How The Fed Factors In Inequality To Calculations

FED
  • Q: How do you factor in inequality to your calculations?
  • A: I would go back to the labor market we had pre-pandemic; wage increases for those at the lowest level of the income spectrum were the largest; where the labor market can remain strong over an extended period of time. We want to get back to that. We have to think about the medium and longer term. Price stability pays dividends over a very long period of time. When it is lost, it needs to be restored as quickly as possible.

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