Federal Reserve Governor Philip Jefferson declared on Friday that US wage growth is too high to be compatible with a timely and sustainable return to the 2% inflation target.
More information
“The Fed is tackling inflation promptly and forcefully to maintain its credibility and preserve the inflation anchor.”
“The outlook for basic non-housing services inflation depends on whether labor demand is better balanced with labor supply.”
“The current imbalance between labor supply and demand suggests that high inflation could slowly ease.”
“The credibility of the Fed is greater now than it was in the 1960s and 1970s.”
“The argument that policy makers need to accept that disinflation will be costly is well reasoned.”
“The current situation is different from the inflation struggles of the past.”
“Policy makers need to complement the conclusions of economic models with a careful examination of real-time data.”
Market reaction
The Dollar Index showed no immediate reaction to these comments and was last seen up 0.6% on the day at 105.19.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
