Imho, the Fed ought to also have a metric for CEO pay rise for, say, companies above 10,000 employees. For a truly radical idea, the Fed could deem large increases as "inflationary".
They could. But they arent. Whether CEOs should get as much as they do (either as a matter of social or corporate policy), they definitely dont make enough at these huge companies to impacts the price of anything.
I humbly disagree. Very high increases in CEO compensation, combined with a sense of fairness, help drive employee wage demands – which in turn impact inflation.
I'm not familiar with the acronym, is PCE is Personal Consumption Expenditures, which is an inflation index?
I'm a nerd for data but cannot claim any expertise on economics.
Yes. It’s regarded as the Fed’s “preferred” metric since it’s not as noisy/arbitrary as CPI
Imho, the Fed ought to also have a metric for CEO pay rise for, say, companies above 10,000 employees. For a truly radical idea, the Fed could deem large increases as "inflationary".
They could. But they arent. Whether CEOs should get as much as they do (either as a matter of social or corporate policy), they definitely dont make enough at these huge companies to impacts the price of anything.
I humbly disagree. Very high increases in CEO compensation, combined with a sense of fairness, help drive employee wage demands – which in turn impact inflation.