WOW!

 

Somebody is talkin some sense.

Wharton professor Jeremy Siegel says the Fed’s rate hikes and ‘monomaniacal’ focus on the labor market are ‘misguided’: ‘Workers are way behind’

"Wharton professor Jeremy Siegel believes the Fed chair is making a mistake."

“I think the Fed’s policy is very misguided, and let me tell you why,” he told CNBC Thursday. “This month is the third anniversary of the COVID crisis. Over that period, wages have gone up less than inflation. It’s hard to argue that wages are causing inflation when they’ve gone up less than inflation.”

“Workers are way behind where they have been historically over the past three years,” he said.

(More like 73 years, but...take what we can get at this point I suppose at least somebody is admitting it

"To his point, median weekly real earnings in the U.S., which account for the impact of inflation, declined more than 7% between the second quarter of 2020 and the end of last year. And in January, real average hourly earnings, which also account for inflation, sank 1.8% year over year, according to the Bureau of Labor Statistics."

(You are working more now for less than you were 3 years ago. It's a form of serfdom just like the one writer said.)

"Still, in his testimony to Congress this week, Powell made it clear that he believes wage growth will need to be slowed to defeat inflation."

(I mean they always find a way to pay you less...It's like it's their only mission in life.)

"Siegel, on the other hand, argued that wages are rising because of a lack of available workers. In February, there were roughly 10.8 million job openings in the U.S., but only 5.7 million unemployed workers. Siegel believes that Powell is attempting to correct this lack of labor supply through interest rate hikes, but it just won’t work.

(He's more right than about it than Powell is. And I think somebody said we were gonna come up 6 million jobs short post Covid. I'm pretty sure. Have to check on that.)

“It’s not the job of the Fed to offset a supply-side shift. They control aggregate demand. I think their focus on how tight the labor market is—suddenly, a monomaniacal type of focus—is the wrong way to go about it,” he said."

"It's the only thing they got and they know it aint gonna work but they have to keep trying anyway kinda thing y'all.)