Could Wages and Prices Spiral Upward in America?
The New York Times
A labor shortage that began as businesses reopened from pandemic lockdowns is helping to push up pay. The Fed is watching carefully.
Amazon, Bank of America and Chipotle are among a spate of companies raising wages this year as they compete for workers in a labor market with more open positions than unemployed job seekers.
But that positive development for workers could morph into a challenge for the Federal Reserve if climbing wages help to keep inflation high, prompting employees to ask for even more money and eliciting an upward spiral.
So far, many economists think such a situation can be kept at bay. But the Fed is closely monitoring inflation and pay data to assess the risk, because the consequences if wages and prices begin to drive each other steadily higher could be serious, requiring a response from the central bank that could be economically painful.
General Motors and other foreign automakers are selling fewer cars and losing lots of money in China, where domestic electric and hybrid cars have taken off.
Pat Gelsinger stepped down after nearly four years at the helm of the onetime highflying company, Intel said Monday.
Pat Gelsinger stepped down after nearly four years at the helm of the onetime highflying company, Intel said Monday.
New rules prohibit the sale of certain types of chips and equipment to China, in an effort to close loopholes and cement the Biden administration’s legacy in countering the U.S. rival.
The company, facing slumping sales, announced that Carlos Tavares would step down immediately and that a search for a new chief was underway.
Business owners say card transaction fees are a growing monthly expense, one often passed to consumers. They’re cheering efforts to lower them.
Data on spending this week shows consumers are being drawn to discounts. Online Black Friday sales picked up at a faster pace this year than in-store shopping, Mastercard reported.