Parsing Mnuchin's Comments on Wages and Inflation

The transcript discusses Mnuchin's policies on raising wages without causing inflation, highlighting the importance of anchoring inflation expectations through monetary policy. It explores the implications of wage inflation on markets, including real interest rates, bond yields, and PE ratios. The discussion also covers potential future actions by the Fed in response to inflation fears and the impact on real interest rates.

What role do inflation expectations play in the context of wage inflation?

What potential actions might the Fed take if inflation fears increase?