The case for a Fed rate cut

Data: St. Louis Federal Reserve; Chart: Axios Visuals

The Fed delivered its first conflicted policy decision under Chair Jerome Powell last week, when St. Louis Fed president James Bullard opposed the decision to keep rates at their current 2.25%–2.50% level.

Driving the news: Minneapolis Fed president Neel Kashkari, who is not a voting member of the rate-setting committee, went further on Friday, calling for an unorthodox 50-basis-point cut to U.S. overnight interest rates immediately.

A case for large wage hikes

Stacked money
Illustration: Rebecca Zisser/Axios

The Fed is mandated to worry about inflation. But the risk of runaway prices seems so remote that, at least for now, some Fed officials and leading economists are embracing what for decades has been rejected as heretical — allowing wages to keep rising without stomping on them with higher interest rates.

Between the lines: A question, however, is whether — given decades of largely flat wages — the Fed should go further to encourage companies to more aggressively raise their employees’ pay.