That said, my optimistic outlook for growth and employment places me among those who see the risks to inflation over the medium term as weighted to the upside, relative to my baseline forecast. Broadly speaking, there are three reasons for this. First, there are wage pressures.
A moment ago, I celebrated the upturn in wages in April, but it may be a sign that the torrid growth of the economy and labor supply shortages have begun pushing up wages faster than occurred with the moderate economic growth over much of the past decade.