[jlbbellefeuille]

Wage spirals are an untested economic theory and economists are split about the effectiveness of what the fed is doing.

The fed is assuming that inflation is being driven by wage increases.

Thus they raise rates to force employers to cut back on compensation and job openings.

How they do this with a clear conscience is beyond me.

Wage growth has lagged behind inflation, let alone productivity for 40+ years!

Inflation is caused by a lot of different factors, but wage growth doesn’t appear to be one of them.