Fed's Logan sees no current inflationary pressure from wages

Dallas Federal Reserve President Lorie Logan on Thursday said that while she does not believe the labor market is a current source of inflationary pressure, she has heard from some Texas businesses that they are raising wages faster than they had expected to.

“When we look at wages right now and think about where productivity is, it looks like wages are not going to provide those inflationary pressures at the moment,” Logan said at the bank's Houston branch in response to a question about a possible “wage-price spiral” in which workers demand higher wages to keep up with high inflation, with their increased spending in turn fuelling more inflation. “I'm worried about the type of risk that you're describing. But right now I, I would say it's early, it's early days.”