The Federal Reserve raised rates by 0.25 percentage points (pps). Fed Chair Powell signalled the end of the “hike, hike, hike” policy. Powell suggested wages were not the primary driver of inflation. Economics considers returns to land, labor, and capital—which for inflation means commodity inflation, wage inflation, and profit growth. Commodities are a disinflation force, while Powell does not think inflation is due to wages. What does that leave?
