Good morning

 

Neel Kashkari and other Fed members seem aware at least of the nosedive in labor's share of business income, but are oblivious to its roots in globalization

Fooling around with interest rates isn't going to bring back the core manufacturing businesses which once formed the hubs of American middle class prosperity. That will be just as ineffectual as it has been throughout the Obama administration. Why should it work now all of a sudden when it hasn't worked for ten years?

Well, what else would you expect from the man tasked with implementing the useless TARP sideshow?

Neel Kashkari still hasn't got a clue, but he sure does sound like the workers' friend.

Kashkari Says Worker Bargaining Power Should Inform Fed's Stance: 

Minneapolis Fed chief links rates to labor share in interview

Kashkari’s break from Fed tradition on inequality adds to the case for keeping interest rates low. He suggested faster wage growth and low unemployment may not be putting much upward pressure on inflation because workers have lost a lot of their bargaining power in recent decades, echoing a point Fed Vice Chairman Richard Clarida has made. ...

Well, at least the Minneapolis Fed President doubts the labor shortage narrative

Too bad he doesn't have a vote right now.