Central bankers trying to ensure that surging consumer prices don’t feed yet more inflation are doing what they can to keep their own houses in order.
For staff working for U.S. Federal Reserve Chair Jerome Powell, his eurozone counterpart Christine Lagarde and their global peers, annual pay adjustments can’t avoid the impact of a once-in-a-generation cost-of-living shock.
Even if they don’t like it, central bank employees face the same hit as everyone else in the labor market at a time when their bosses want to contain rampant inflation in the economies they oversee by heading off excessive wage increases.