Wages are the New Target of the Federal Reserve in Their Aim to Control Inflation

Former JPMorgan Global Chief Economist for JPMorgan Chase & Ph.D in Economics

Whether one agrees or disagrees with this strategy, the view has garnered the support of doves and hawks alike at the Federal Reserve.  The Fed has embraced this position is because labor costs account for two-thirds of the average cost of producing goods and services sold in the United States.  They believe that by restraining wages, policy-makers will…