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Wage Growth Too High
"A couple of years ago, I said, and my colleagues said some of these factors look like they are temporary or transitory. Supply chains are going to get sorted out. So maybe we do not need to overreact. Well, it took a lot longer than we expected. And now you are seeing wages climbing. And wages are climbing trying to catch up to that inflation rather than leading the inflation. But now wage growth is at a level that it is actually too high to be consistent with our 2 percent inflation target."
Getting Inflation Down More Important Than Avoiding Recession
"We would like to avoid a recession but we know we have to get inflation down. Getting inflation down is job one."
Targeting Wage Growth
In response to a question, Kashkari said "We would need to get wage growth closer to 3 percent to be consistent to our 2 percent inflation target. I don't know how embedded [wage growth is] but it is our job to make sure that it does not become embedded."
originally posted by: chris_stibrany
a reply to: infolurker
Well the shocker is. I only got a 3% increase this year for 'merit' and it doesn't really cover my mortgage increase. So there is that.
Maybe this 3% thing is some kind of WW2 era or even 1800s Zionist call of '6 million'
These whoever they are seem to float certain numbers around a lot.