Fed tells employers to STOP giving pay rises in order to bring inflation down: Warns wages are rising faster than they have in decades - and there are now almost two jobs for every person looking for work

UK Daily Mail ^ | November 17, 2022 | Hariett Alexander and Keith Griffith

[C19fan]

Employers should stop giving pay rises to their staff, a member of the Federal Reserve's board has said, in a bid to help bring down inflation.

Christopher Waller, one of six members of the Fed's board, used a speech in Phoenix, Arizona to urge bosses to take into account inflation when looking at their labor force.

He pointed out that there are now almost two jobs for every person looking for work, and that wages were rising faster than they have in decades - making the target of 2 percent inflation even tougher to reach.

[C19fan]

This is stuff I remember from the 1970s; Whip Inflation Now. In other words, Waller wants the peasants' real wages to fall. The Fed should keep its pie hole shut on what employers pay their workers. If the Fed did its job in the first place it would not need to jawbone employers to bail them out.

[2banana]

Does the Fed ever look in the mirror to see..

THEIR INSANE MONETARY POLICY IS THE REASON FOR INFLATION

[rbg81]

He pointed out that there are now almost two jobs for every person looking for work, and that wages were rising faster than they have in decades - making the target of 2 percent inflation even tougher to reach.

---

And, meanwhile, 52% of HR directors have been told not to hire White men.

[Highest Authority]

How about, cut all Fed personnel salaries to minimum wage?

[ClearCase_guy]

I look forward to owning nothing and being happy.

[Lonesome in Massachussets]

That was fast from Carter to Ford in 24 months. Traveling backwards in time is weird.

[Skywise]

Then lower the minimum wage.

Democrats always whining that it’s someone else’ fault for their stupid actions.

The problem isn’t that wages are too high the problem is that, with Covid and govmint give aways, nobody wants to work - which makes real workers that much more valuable (and expensive)

You want inflation to drop? STOP GOVMINT HANDOUTS

[Adder]

Works for me.

Where were they when burger flippers were demanding $15/hr for NO skill positions? Now its pretty much the base rate everywhere from construction to warehouse jobs to fast food.
Labor costs doubling for no reason is not good. Just one more upward pressure tossed into the stew of upward price pressures.

[RoosterRedux]

Apparently, academically-oriented economists in bureaucratic jobs with no practical life experience are running wild again.

I remember when I took economics in college. It became obvious right away that the professor had never held a real job and knew nothing about business or, for that matter, running a family. He was the kind of incompetent that loves to move from academia to government work.

The Fed is full to the gill with that kind of idiot.

[House Atreides]

And yet FEDERAL EMPLOYEES’ salaries continue to rise rapidly. Huge numbers of them produce absolutely nothing of true value.

[unread]

Brother can you spare a dime....

[NorthMountain]

Wage and Price Controls have never had any beneficial effect for We the People.

[loucon]

As an employer, the reason we are forced to pay more for quality employees is because there are now almost two jobs for every person looking for work, and half of that available workforce is incompetent.

[Sirius Lee]

half of that available workforce is incompetent.

And they vote for their own!

[noiseman]

I hate to agree with anyone at the Fed, and I know that the real cause of the inflation has been the dems decimating energy production combined with spending trillions of phony dollars, but it is true that if employers respond by jacking up wages it will only worsen the inflationary spiral. As someone who is now retired and on a fixed income, this has been my greatest fear in all of this, that employers would give in to employee demands for more money and raise wages. Artificially paying more, with no commensurate increase in productivity, is just as inflationary as all of the funny money that the federal government dumped. It keeps the inflationary spiral going and is incredibly destructive to those on fixed incomes, because what happens after a while is that the average wage becomes so high that prices rise to meet it and retirees and others not on the gravy train get priced out.

This is exactly like the leftist idea to give everyone a “guaranteed basic income”, except that many will not receive anything at all and be left completely behind. If you gave everyone a million dollars it wouldn’t make any of them rich, it would just cause everything they buy to skyrocket in price in response. Whatever the average income is becomes roughly what is needed just to barely survive. It doesn’t matter whether it’s $50,000 or $50 million. Jacking it up now will just cause many to fall below that survival line.

[Yo-Yo]

This is stuff I remember from the 1970s; Whip Inflation Now.

Before Gerald Ford's "Whip Inflation Now" buttons there was Richard Nixon's Wage-Price Freeze.

[maddog55]

And the Federal government is giving across the board 8.7% cola increases.

[central_va]

I look forward to owning an AR15 and nothing else and being happy.

[central_va]

I dont believe anything the Feds say. It is all lies now.

[EBH]

We are headed for something we have not had before,

An Apathy Recession

Perhaps the real answer is to ‘pay more’ to get those workers on the sidelines still back on the job.

LOL.

This is a problem with being in a woke culture. You cannot take minimum wage jobs and pay $15- $20 per hour. Now they want the employer, who cannot fill those jobs, to pay less?

I have a better idea, cut government employment instead. Start with the IRS and 87,000 new hires.