Hacker News Reader

Wage spirals are an untested economic theory and economists are split about the effectiveness of what the fed is doing.

The fed is assuming that inflation is being driven by wage increases.

Thus they raise rates to force employers to cut back on compensation and job openings.

How they do this with a clear conscience is beyond me.

Wage growth has lagged behind inflation, let alone productivity for 40+ years!

Inflation is caused by a lot of different factors, but wage growth doesn’t appear to be one of them.

Thanks for the link; I can’t read the article because I’m not a WaPo subscriber (I’ll see if I can find a copy somehow).

Do you know whether the Fed forecasts that for software engineering jobs? I think that is what’s most relevant for a large number of folks in this thread.

This was in response to the comment about wages decreasing for the whole economy.

I don't know of any specific forecasts. It's possible the actual report by the Fed does break down by industry, but I'm not sure.

without paywall: https://archive.ph/qqQMw (article is 9 months old, though)