Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
The Wage-Inflation Trap Locking Fed Rates Higher
Inflation is once again outpacing wage growth, squeezing American paychecks and complicating the Federal Reserve’s next move. With August CPI data showing persistent price pressures and core PCE holding steady above target, we examine why this divergence matters more than headline numbers suggest. Lucas and Luna break down how services inflation remains sticky while goods prices cool, creating a unique policy dilemma for September 2026. We explore whether the Fed will interpret rising unit labor costs as a signal to hike rates or wait for clearer signs of cooling in the labor market. This…
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