Biden’s Economy Leads Fed to Warn Employers Against Giving Workers Raises

This story was originally published by the WND News Center.

Under Joe Biden’s economy, Americans are being slammed with the highest inflation in decades. It’s costing them thousands of dollars more this year to pay the same bills as they had last year.

Gasoline prices have exploded, as have diesel prices, which hits the cost of every consumer item delivered to retail stores. Biden recently proposed a requirement that diesel suppliers maintain an inventory, which will drive prices even higher.

Their retirement funds have been decimated, resulting in what for many of those nearly at that status probably will be a permanently lowered income for their latter years.

He’s spending hundreds of billions of dollars on the “green” agenda, which today’s children will have to repay with interest.

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What else can happen?

Now we know.

The Federal Reserve is warning employers against giving workers raises.

According to a new report in the Daily Mail, Christopher Waller, one of the six members of the board, told the annual Economic Forecast Luncheon to quit giving workers raises, “saying that it was pushing up inflation.”

“Wage growth has been a contributing factor to inflation, especially in the service sector, so it is important to get the labor market into better balance to bring future wage growth down to a more sustainable level that will assist in moving overall inflation lower,” he claimed.

“At any other time, I would be pretty unhappy about slowing growth, but not now.”

Waller, by the way, gets paid in excess of $183,000 for being on the board, according to the Federal Reserve itself.

He claimed there are “almost” two jobs for every person looking for work, which could be attributed at least partly to the impact of the government’s COVID pandemic shutdown of America’s economy, where many people took retirement and made other work arrangements and simply haven’t returned to the old system.

The Fed this year repeatedly has raised interest rates across the nation, pushing the cost of borrowing much higher for consumers, hitting directly at their monthly pay-to-bills ratio.

Inflation hit a massive 9.1% in June, and it’s backed off very slightly since then.

Waller continued, “Business contacts tell me of empty offices and idle production capacity because employers cannot find workers.”

But within the last few weeks, Big Tech companies, Amazon, Twitter, and Facebook, all have confirmed the firings of tens of thousands of workers.

And he repeated his warning about paying too much in salaries and wages.

“Wages have been rising more quickly than they have in decades, much faster than productivity growth plus 2 percentage points that I think of as consistent with the FOMC’s 2 percent inflation objective,” he said.

He said it is good that interest rate surges have slammed the housing market.

“As purchases of homes fall, so does the demand for goods that typically accompany purchases—new carpeting, new furniture, new lawnmowers, and so on. So slowing home sales will decrease demand for goods that complement the purchase of a new home and that will put downward pressure on the prices of those goods. Our goal is to rein in demand, bringing demand and supply into better balance, which will help reduce upward inflation pressure,” he said.

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