The Affordability Mandate: Powell Pledges "Years" of Real Wage Gains, Solidifying Commitment to 2% Inflation

Federal Reserve Chair Jerome Powell dramatically broadened the Fed's mandate beyond simply returning inflation to target. By stating it will "need to have some years where wages outpace inflation for people to feel good about affordability," Powell has anchored the central bank's policy to improving living standards—a concept known in Global Markets Eruditio as prioritizing "real wages.”