3min chapter

The Intelligence from The Economist cover image

Riot-geared: the tensions behind France’s unrest

The Intelligence from The Economist

CHAPTER

The Fed's Warning: Wages Are Driving Inflation

Hourly wages shot up about 6% in America last year, the fastest rise in four decades. Wages do figure into inflation clearly but they are still rising too strongly. In no world is that consistent with getting inflation down to central bank targets of roughly 2%. You'd really want to see wage growth more like 3%.

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