Many Americans "still think we’re
still in a recession,” says Bernstein. “Over the course of the
expansion that began in the second half of 2009, median household income
is down 5% in real terms. Meanwhile the S&P 500 is up 70% and
corporate profits are up 50%.”
Bernstein
believes that Yellen should ignore the hawks worried about inflation
because “the wage pressure that’s out there is very minimal and if you
look at wages relative to inflation it’s not up much at all.”
“What
we really want to be concerned about from the Federal Reserve’s
perspective is stamping out any wage gains way too soon,” says
Bernstein. “These voices I hear saying ‘quick get the fire hose because
things are heating up too much,’ are very out of sync with the data,
with the needs of the American people, with the actual goals of the
Federal Reserve and with inflation statistics.”
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