Markets Are In A "Speculative Blowoff", But When Will It End? | David Hay
Thoughtful Money with Adam Taggart
00:00
The Challenge of Addressing Sticky Wages in Light of Rising Commodity Prices
The Federal Reserve will face a conundrum in dealing with the challenge of reducing goods inflation, particularly after experiencing a decrease in commodity prices post the invasion of Ukraine. However, wage increases are sticky and hard to reverse, especially in the services sector which accounts for 70% of the economy. Despite the reluctance to lay off employees due to challenges in hiring during and after the COVID-19 period, employers are opting to reduce work hours. The potential rise in commodity prices, notably in oil, could further complicate the situation in the short term.
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