◀ The Principal Blog

Posts tagged ‘inflation’

Fed Paves the Road to Higher Interest Rates



The recent Federal Reserve statement acknowledges progress in the U.S. labor market, while continuing the watch for higher inflation and wages. Looking at this statement in its two component parts may help us better understand how the Fed is thinking about a possible rate hike later this year. In…

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New Research on the Relationship between Wages and Inflation: Looking at Other Indicators



During the 1970s, economic research focused on the problem of the day — high inflation. And, wages were increasing at the same time as inflation. Economic theory had a nice explanation for this relationship – higher wages were passed through to consumers via higher prices. As inflation picked…

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