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Powell Asked On His Concerns About Wages Now Outpacing Inflation

FED
  • Q: Are you concerned about wages now outpacing inflation?
    • A: We want people to have [growing] real wages, but going up at a level that's consistent with 2% inflation. We don't think that wages were an important cause of inflation in the first year or so of the pandemic but are probably an important issue going forward. That's why we think we need some further softening in labor market conditions.
  • Q: Last month you said this meeting would be a live one - to what extent was it live, was there any doubt over the past 2 days of the result?
    • A: I would say there was a range of views, you will see this in the minutes in three weeks, about what we should do at this meeting and the next. Many times when we go into a meeting the decision is not fundamentally in doubt. Some meetings are less uncertain than others

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