Dallas Federal Reserve President Lorie Logan on Thursday said that while she does not believe that the labor market is a current source of inflationary pressure, she has heard from some Texas businesses that they are raising wages faster than they had expected to."When we look at wages right now and think about where productivity is, it looks like wages are not going to provide those inflationary pressures at the moment," Logan said at the bank's Houston branch in response to a question about a possible "wage-price spiral" in which workers demand higher wages to keep up with high inflation, with their increased spending in turn fuelling more inflation. "I'm worried about the type of risk that you're describing. But right now I, I would say it's early, it's early days."
Fed's Lorie Logan sees no current inflationary pressure from wages
According to Dallas Federal Reserve President Lorie Logan, the labor market is not a contributing factor to current inflation. She highlighted that some Texas businesses are unexpectedly elevating wages. While expressing worry over the risk of a wage-price spiral, Logan noted that it is still too early to ascertain whether these trends will persist, stressing the need for continued evaluation.
131 words~1 min read
