Former Labor Minister Robert Reich has expressed his concern about the Those of the Federal Reserve Fighting inflation related to employment.

Reich noted that the central bank’s attempt to curb inflation by putting people out of work was “cruel”.

“Putting people out of work is the Fed’s way of reducing workers’ bargaining power and the ‘upward pressure on prices’. But fighting inflation by putting people out of work is cruel, especially when America’s safety nets – including unemployment insurance – are in tatters,” Reich tweeted.

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Employment data released on Friday showed payrolls rose more-than-expected in December. The US added 223,000 jobs last month, up from a median estimate of 200,000 jobs. Unemployment was 3.5%, below the estimate of 3.7%.

However, what is also striking at this time is the massive layoffs announced by tech companies to counter a possible recession this year.

wage inflation: Friday’s data also showed that wage increases have slowed and service activity has slowed, easing concerns about the Federal Reserve’s rate hike path. the SPDR S&P 500 ETF Trust SPY closed 2.29% higher during the Vanguard Total Bond Market Index Fund ETF BND gained 1.10%.

Experts have stressed the importance of reducing wage inflation in order to control inflation. Former Treasury Secretary Lawrence Summers said wage inflation cannot be reduced significantly without a “significant slack in the labor market,” which is currently absent.

Reich also said many Americans still live in difficult conditions. Citing a CNBC article citing a billionaire Charlie Munger Reich tweeted, “Everyone is five times better than they used to be,” “Reminder: 60 percent of Americans live paycheck to paycheck.”

Continue reading: Obama-era economic adviser Christina Romer believes policymakers will face a tough decision on the interest rate path

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