[jazzkingrt]

One reason is that inflation has a lot of inertia, because inflationary expectations drive more inflation.

A strong labor market drives up wages. When not matched by GDP growth, those wages increase costs, which cause workers to demand higher wages to keep up with those costs, and so on.

The cycle needs to be broken even if there is short term pain for workers.

[maerF0x0]

But what about the decades of wages not keeping up with productivity (proxy for GDP Growth)? Could this simply be seen as workers finally getting their due?