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Remote Work Could Save Firms $206 Billion and Ease Pressure on the Fed

  • Economists’ paper says 4 in 10 firms expand work from home
  • Remote workers accept lower pay growth, easing price spiral
    

    

Photographer: Daniel Acker/Bloomberg

The rise of remote work could make the Federal Reserve’s task of taming inflation a bit easier, while saving employers more than $200 billion, according to new research.   

That’s because workers are willing to accept smaller pay increases for the convenience of working from home. In turn, that helps moderate business costs and slow what economists call the wage-price spiral -- when companies pass higher expenses on to consumers in the form of higher prices.