Fed Commentator Robert Kuttner says the policy of the Federal Reserve -- raising interest rates to ward off future inflation -- is perverse. He says inflation is lower this year than it was in 1996. Fed Chairman Alan Greenspan worries that a tight labor market means workers will be able to win salary hikes in the future. Kuttner predicts the addition of former welfare recipients to the labor force will actually hold wages down. He concludes the Fed is more concerned about bankers, brokers and investors than ordinary people.
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Commentator Robert Kuttner says the policy of the Federal Reserve — raising interest rates to ward off future inflation — is perverse. He says inflation is lower this year than it was in 1996. Fed Chairman Alan Greenspan worries that a tight labor market means workers will be able to win salary hikes in the future. Kuttner predicts the addition of former welfare recipients to the labor force will actually hold wages down. He concludes the Fed is more concerned about bankers, brokers and investors than ordinary people.