Even if wages did catch up, retired folks are permanently disadvantaged. There’s a reason why the Fed targets a low inflation rate by default than letting it float freely.
Agreed, but my comment was more specifically about inflation being "permanently embedded in prices".
Also, retirees with savings don't tend to have all of it in cash (I hope?), but even if they do, the higher cash rate will slightly offset some of those effects.
Also, retirees with savings don't tend to have all of it in cash (I hope?), but even if they do, the higher cash rate will slightly offset some of those effects.