Tuesday, September 20, 2022

Share the pain

 

Sept. 20, 2022

Pay of members of the federal reserve board and Congress should be tied to the median wage. Maybe a multiple of the bottom 20%.   The only way the fed has to bring down inflation is to slow the economy, causing job losses for some.  Since they think this is a price worth paying, they should be willing to be good patriots and share in the pain.  And Congress would be motivated to take other measures to cool inflation.

 

https://www.federalreserve.gov/newsevents/speech/powell20220826a.htm

 

August 26, 2022
Monetary Policy and Price Stability

Chair Jerome H. Powell 

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While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.

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