3min chapter

Forward Guidance cover image

Did The Fed Just Back Down? | Joseph Wang & Michael Ippolito

Forward Guidance

CHAPTER

The Fed's Discussion on Unemployment

Sarah Powell spent a good amount of time chatting about this. He seemed to think that the wages were not necessarily driving inflation. Inflation started because there's tremendous demand earlier in the pandemic. But now that wages have gone up, that gives people more spending power so they can continue to afford higher prices and so that kind of keeps inflation high.

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