Q1 US Employment Costs Skyrocket Most In History Helping To Increase Already Soaring Inflation (PCE YoY Rises To 40-year High of 6.60% YoY)

Not only has The Federal Reserve driven M2 Money Velocity to near historic lows, but now we find out that the Employment Cost Index just rose to a historic high.

Of course, a variety of minimum wage laws have helped drive up employments costs. Don’t tell lawmakers that minimum wage laws lead to higher inflation since they typically deny responsibility for anything. But I can almost picture the 4 Horsemen of the Inflation Apocalypse (Powell, Biden, Pelosi, Schumer) sitting around asking “What we can do to make inflation worse?”

We did see the PCE Deflator YoY rise to 6.6%, the highest since 1982, the highest in 40 years.

Personal spending increased to 1.1% in March, probably panicking buying over further inflation.

A PCE Deflator of 6.60% leads to a Taylor Rule estimate of 9.05% for The Fed Funds Target Rate.

The Federal government and Federal Reserve trying to solve inflation reminds me of Parks and Recreation’s Jerry Gergich trying to celebrate his retirement.

7 thoughts on “Q1 US Employment Costs Skyrocket Most In History Helping To Increase Already Soaring Inflation (PCE YoY Rises To 40-year High of 6.60% YoY)

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