"Consumer prices were up 4.2 percent in March from a year earlier, according to the Fed’s preferred measure of inflation, the Personal Consumption Expenditures index, the Commerce Department said Friday. That was the slowest pace of inflation in nearly two years, down from a peak of 7 percent last summer." This makes it seem like inflation may be stabilizing.
Wages, meanwhile, continue to rise rapidly good news for workers trying to keep up with the rising cost of living, but a likely source of concern for the Fed. The Fed has been raising interest rates as well for more than a year in an effort to cool off the economy and bring inflation down to the central bank’s target of 2 percent per year. Higher interest rates have already taken a toll on housing, manufacturing and business investment.
On the one hand, rising wages can be seen as a positive development for workers who are trying to keep up with the rising cost of living. On the other hand, the Fed may view this as a potential source of concern, as higher wages can contribute to inflationary pressures in the economy.
https://www.nytimes.com/2023/04/28/business/economy/inflation-fed-wages-prices.html
It's interesting to see how rising wages and inflation affect the economy and how the Federal Reserve manages these issues by changing interest rates. It will be crucial to keep an eye on how these trends develop and how they will impact consumers' and workers' daily lives.
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I wonder about the impact the job market has had on these wages rising and how unemployment will affect these wages.
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