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
Christopher Waller, one of six members of the board of the Federal Reserve, on Wednesday addressed the Annual Economic Forecast Luncheon, held in Arizona
Waller, a governor of the Fed since December 2020, used his speech to emphasize ‘the Federal Reserve’s ongoing fight to reduce inflation’
He urged employers not to give any pay rises, saying that it was pushing up inflation
‘At any other time, I would be pretty unhappy about slowing growth, but not now,’ Waller said
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.
‘Wage growth has been a contributing factor to inflation, especially in the service sector, so it is important to get the labor market into better balance to bring future wage growth down to a more sustainable level that will assist in moving overall inflation lower,’ said Waller.
‘At any other time, I would be pretty unhappy about slowing growth, but not now.’