Most Fed officials, including Mr. Powell, a current member of the board, are ready to move on rates. While they don’t completely understand why inflation is low, they are confident that it will rise as the economy continues to grow — as employers seeking workers are forced to offer higher wages.
The labor market currently has very high tradebook uncertainty. The only real safe hire is the minimum wage. The high skilled have no labor market, at the moment.
We can understand this with wage settings. The more wage settings the market can handle, the more accurate the wages. We cannot support a information rich labor market, too many government fees bear down. That is why we suddenly shift to high unemployment, the labor market must requantize on whole unit of uncertainty from the previous quants. The extreme of unemployment is going to every high as we have to rebuild the labor markets to reflect the repricing done during the recession.
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