The Fed is an unelected institution that is subservient to elite financial interests and insulated from any democratic checks. And yet it is empowered to unilaterally set economic policies that affect all 330 million of us, to the detriment of the vast majority.
https://www.npr.org/2022/06/29/1108109505/job-cuts-layoffs-economy-recession
From the article:
Fed Chair Jerome Powell says he and his colleagues are trying to stabilize a job market that is “unsustainably hot.” Wages have been rising at a fast clip in an economy where the unemployment rate is at 3.6%, which is very close to its pre-pandemic low.
“You have two job vacancies essentially for every person actively seeking a job, and that has led to a real imbalance in wage negotiating,” Powell said when answering questions at a press conference two weeks ago.
The Fed chair is aware of the pain that will be inflicted on more people as he wrestles with inflation and tries to tame it.
“We don't seek to put people out of work,” he said. “But we also think that you really cannot have the kind of labor market we want without price stability.”
“Price instability” = a very modest rise in wages over the past two years, which while still way lower than inflation, is simply “too much” for employers and their investors to bare.
“kind of labor market we want” = low wages with no worker bargaining power.