Returns on Capital to Labor and Higher Costs?

Although some analysts warned of inflation, Ms. Girard said the pay increase should not bother policymakers at the Federal Reserve. “I don’t think it’s something the Fed should worry about,” she said. “Productivity growth is picking up, and workers should earn more. It doesn’t mean companies have to pass on higher wage costs to consumers. They can afford to pay them more.”

US added 250,000 Jobs in October – Patricia Cohen

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