The stock market is at record highs, the unemployment rate is low, home prices are growing and wages are down. Collectively, what does it all mean?
Danielle DiMartino Booth, former insider at the Federal Resserve and author of Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America, joined Glenn in studio to explain why the Federal Reserve is worried and what it means for the average Joe.
“The last time the unemployment rate was where it was, wages were growing at about four percent. Today, with the same unemployment rate, wages are running at two and a half percent. Yawn. We wonder why there’s a shadow economy. We wonder why people are driving Uber at night. There’s a reason. Their wages aren’t growing. Their paycheck has barely moved and not kept up with inflation,” DiMartino Booth said.
In a recent speech, Bill Dudley — second in command at the Federal Reserve — expressed concern about the unemployment rate crashing, causing run away wage inflation.
“The average working Joe wants their paycheck to go up. There’s nothing intuitive about the reasoning right now at the Fed, nothing,” DiMartino Booth said.
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This article was originally published on GlennBeck.com.