Fed's Lorie Logan sees no current inflationary pressure from wages

Dallas Federal Reserve President Lorie Logan on Thursday said that while she does not believe that 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."