The US Federal Reserve Chair Jerome Powell commented before lawmakers that it is possible for inflation to decrease and wages to continue increasing as long as companies and shareholders take less profit.
Powell added that it is possible to maintain growth in workers' benefits in a shorter term in case corporate profits declined from recent high levels, but it would be challenging to run it in the long haul.
Powell's comments could trigger a discussion on how inflation, job market and economy will affect the said topic.
Federal Reserve Chair Jerome Powell hinted at the possibility that lowering corporate profits could help ease inflation and benefit workers' wages as well.
Powell made the comments when he testified before the U.S. Senate Banking Committee on corporate profits' role in sinking and sustaining inflation levels.
Powell said that the challenge in long-term maintenance of benefits may emerge, but he expressed confidence that it could happen in the shorter term.
Powell's comments may add to the ongoing debate on corporate regulation and government spending on the effect of 2021's rapid price spikes.
Democratic Senator Chris Van Hollen highlighted Van Powell's statement hoping for a presidential focus on diverting more of the economy's spoils to workers.
Republicans at the hearing, however, have stood by their stance of citing overregulation and government spending as the sources of the said inflation surge.