The Fed economic policies of strict inflation control have had a big part in holding down wages for working people. We all know when there is very strong job growth the Fed increases interest rates to slow the economy. This is done to limit inflation but it's executed at the very point when the "working person" would otherwise have the chance to get ahead. If interest rates were held lower longer strong job growth would elevate competition for labor... thereby increasing wages. This strategy caries with it a more pronounced risk of a spike in inflation but I would suggest that risk is worth it. If you look at the stagnation in real wages it starts around 1980, not coincidentally 1 year into Paul Volcker's term as fed chairman (whose clear mandate and legacy was controlling inflation at any cost).