Federal Reserve Chairman Powell hints on CNBC that the Fed will not be raising interest rates anytime soon. It appears that the key trigger for the Fed to raise interest rates is wage growth, which Powell appears to see as synonymous with inflation. Remember that historically, the Fed is obsessed with inflation and that traditional economics sees workers as a resource cost – rather than Americans trying to support their families.
Powell states, “. . . wages which are continuing to gradually move up . . . for me at this time does not raise concerns about too high inflation”. He continues, “. . . with the muted inflation readings that we see coming in, we will be patient as we watch to see how the economy evolves”.
Gee, thank you Mr. Federal Reserve Man, I will try not to mess up the economy by getting a good job and receiving a high salary. Please click on the image above to view the video.