"The Fed keeps a hawk’s eye on wages, especially in the lower 80% of the workers. Its goal is to provide cheap labor to corporate America. And when wage inflation ticks up, the Fed can get quite radical about rate increases.
But because cheap labor makes for bad consumers, the Fed is trying to make cheap debt available to them, turning them into debt slaves, problem solved, for the moment.
So this is one lesson we learned: QE channeled to financial and corporate entities causes asset price inflation, not consumer price inflation. And it tends to exacerbate wage deflation at the lower 80% of households.
One of the exceptions is rent. When residential property prices soar, rents tend to follow. And rents have increased sharply in many cities. But unlike stocks, people have to live in these units, and when rents move beyond their reach, all kinds of things happen, including property price crashes."