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“The Fed looks closer to winning the war on inflation today, but it risks losing the war on keeping the economy afloat and away from the shoals of recession,” said Christopher Rupkey, chief economist at FWDBONDS in New York.

For many Americans the recession began sometime ago. Paycheck purchasing power has receded. In other words, pay has not increased at the same rate of inflation. The really sorry news is that if pay did keep pace with inflation it would only add to inflation.

Worse economic news came out last Friday, when it was announced non farm labor productivity fell by 2.7% in Q1. That’s the fifth consecutive quarter of declining labor productivity. Non farm labor costs rose 6.3% in Q1. It is inflationary when businesses make less for more. Regulations are partly to blame. Thanks Brandon. I also think workers are in a funk. What did Jimmy Carter call it? ‘Malaise’, yeah that’s the ticket.