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Mon Jun 7, 2021, 12:53 PM

Yellen: No signs yet of unsustainable wage increases

Treasury Secretary Janet Yellen said Sunday that she doesn't see signs of inflation rising at a dangerous rate, but warned that "prolonged excess demand" could trigger unsustainable wage increases.

In a Sunday interview with The New York Times, Yellen said she expected the recent jump in inflation to ease once the U.S. economy hits its post-pandemic stride later this year. Price and wage growth have both jumped in 2021 after falling sharply in 2020, both largely due to the economic impact of the coronavirus pandemic.

Yellen, fellow members of the Biden administration and Federal Reserve officials have all expressed confidence that the spike in inflation is transitory, even as it exceeds the projections of economists. Even so, Yellen told the Times that she is paying close attention to low-wage earnings growth for signals of dangerous inflationary pressure.

"We don't want a situation of prolonged excess demand in the economy that leads to wage and price pressures that build and become endemic," Ms. Yellen said. "Looking at wage increases, you can have a wage price spiral, so you need to be careful."

https://www.msn.com/en-us/news/politics/yellen-no-signs-yet-of-unsustainable-wage-increases/ar-AAKNvXB

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Reply Yellen: No signs yet of unsustainable wage increases (Original post)
Yo_Mama_Been_Loggin Jun 7 OP
Yavin4 Jun 7 #1
roamer65 Jun 7 #2
Yo_Mama_Been_Loggin Jun 7 #5
roamer65 Jun 7 #6
gratuitous Jun 7 #3
Johnny2X2X Jun 7 #4
Wounded Bear Jun 7 #7
Trailrider1951 Jun 7 #9
WhiskeyGrinder Jun 7 #8

Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 12:56 PM

1. By September, most of the relief money will end

which will force more people back into the work force all at the same time. We may see a slight dip in wages for some time to come.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 12:57 PM

2. They don't care about inflation right now.

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Response to roamer65 (Reply #2)

Mon Jun 7, 2021, 01:52 PM

5. Yet the Republicans keep trying to use it as the boogieman

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Response to Yo_Mama_Been_Loggin (Reply #5)

Mon Jun 7, 2021, 05:11 PM

6. Deficits only matter when Dems are in the WH.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 01:02 PM

3. Sure, we can keep paying people more money, but some day we might not be able to do that

Better slash wages now before too many people start building a financial cushion and get used to having money at the end of the month instead of month left at the end of their money. Secure workers aren't fearful workers, and they might start thinking they're entitled to more of the Wealth their Labor generates instead of funneling it all up to the top.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 01:17 PM

4. The upwards pressure on wages right now is great to see

Employers competing for workers right now is fantastic. People don't understand displaced workers, that laid off workers don't just sit at home waiting for the phone to ring, they go into other industries, they find other jobs, you can't just rehire the same people you laid off, it takes time.

All of this is creating more upwards pressure on wages than at any time I can remember in my life. It will be long lasting and it's what's going to cause the economy to boom the next few years. However we got to this point, we're in a position to build the economy from the ground up for a change.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 05:58 PM

7. What in the hell is an "unsustainable wage increase?"...

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Response to Wounded Bear (Reply #7)

Mon Jun 7, 2021, 07:38 PM

9. Yeah, no shit! Ms. Yellen, meanwhile we keep seeing unsustainable increases in the cost of

HOUSING
FOOD
HEALTHCARE
EDUCATION
LICENSE FEES
INSURANCE COSTS

Yet, Ms. Yellen, you say that the only sign of rampant inflation is "unsustainable wage increase"? WTAF?

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