The Fed made it plain today that they adhere to the dual mandate, and even as inflation is barely 2%, labor markets are tight. So, instead of letting wages and the consumer get any stronger, they want to increase business debt costs- while hoping for lower revenues. Further, they also want to increase consumers’ debt costs- but not their wages. All this while stocks and housing are crashing- and while tariffs may send business and consumer costs higher- and while making clear they have no concern over debt and asset bubbles- they just want wages in check, no matter what.
Interest rate hikes should not prevent wages from rising “at all”. Incomes in America are allowed to rise, I think.