Powell Faces Pushback Inside Fed Over Need to Cool Wage Gains
- Fed chief has flagged risk rapid pay gains may fuel inflation
- Fed presidents Goolsbee, Bullard sound less concerned
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Federal Reserve officials from opposite ends of the policy spectrum are finding some common ground in a key topic of interest-rate debates: They’re skeptical wage gains will fuel further inflation.
While Chair Jerome Powell has spoken of the risk of rapid pay gains feeding into prices, Fed presidents Austan Goolsbee of Chicago — who’s taken a dovish stance in recent weeks — and leading hawk James Bullard of St. Louis have played down their significance to the price outlook.