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Inflation Alert! US Unit Labor Costs Soar in Q4 2022 To 3.2%, 2x Expectation Of 1.6%, UP 6.50% YoY (The Worst In 30 Years)
Confounded Interest ^ | 03/02/2023 | Anthony B. Sanders

Posted on 03/02/2023 7:27:03 AM PST by Kaiser8408a

Despite Treasury Secretary Janet Yellen claiming that inflation was only transitory and likely to disappear, we are seeing continued inflation. Now we see that Unit Labor Costs are up 3.2% QoQ for Q4 2022.

Even worse, US unit labor costs rose 6.5% on a year-over-year (YoY) basis, the WORST since 1982.

And yes, Q4 2022 unit labor costs are up 2x the expectations.

In normal times, The Federal Reserve would raise rates to cool down the economy. The Taylor Rule suggests a Fed target rate of 10.59% versus the current Fed rate of 4.75%. A long way to go!!

Damn it, Janet!

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: biden; inflation; jobs; labor
Damn it, Biden!
1 posted on 03/02/2023 7:27:03 AM PST by Kaiser8408a
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To: Kaiser8408a; FRiends
Shadow Stats has had Inflation pegged OFF THE CHARTS for the past two years!

http://www.shadowstats.com/alternate_data/inflation-charts

2 posted on 03/02/2023 7:39:28 AM PST by Diana in Wisconsin (I don't have, 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set. )
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To: Kaiser8408a

YoY!


3 posted on 03/02/2023 7:43:12 AM PST by webheart
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To: Kaiser8408a

Large population states have created high minimum wage laws.
Wage inflation is the most pernicious and is moving through the whole economy.


4 posted on 03/02/2023 7:50:40 AM PST by Williams (Stop Tolerating The Intolerant)
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To: Kaiser8408a

I take issue with the author just a bit. He says that in normal times the Fed would raise interest rates to cool off the economy. Well that is not exactly true. Raising rates usually does have the effect of cooling off the economy, but that is not the reason they do it. Inflation is caused by an overly large money supply. Raising rates decreases demand for loans, thereby reducing the monetary multiplier effect and thus reducing the money supply.

Saying the Fed raises rates to cool off the economy is kind of like saying the doctor uses the defibrillator to make the alarms stop beeping. It does that, but that isn’t the real purpose.


5 posted on 03/02/2023 7:55:22 AM PST by stremba
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To: stremba

Saying the Fed raises rates to cool off the economy is kind of like saying the doctor uses the defibrillator to make the alarms stop beeping. It does that, but that isn’t the real purpose....

roflmao post of the day!


6 posted on 03/02/2023 7:59:56 AM PST by rolling_stone
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To: Kaiser8408a

crummy little french fry workers are still asking for outrageous hourly pay rates and as long as companies need bodies they have to pay it. There should be a minimum wage for full time vs part time workers. Most food service places do not need many full time workers, this would save a ton of money and cool some inflation


7 posted on 03/02/2023 9:11:23 AM PST by pangaea6
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To: stremba

High rates also pull excess dollars out of the economy as they get a better return accruing interest as opposed to other uses.


8 posted on 03/02/2023 9:13:10 AM PST by 31R1O (The people who can control themselves ought to be able to defend themselves from the people who cann)
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