Inflation and Wages

The point of inflation is to reduce the wages paid to poor people?

That's the whole point of inflation. Remember, wages are 'sticky' in that workers don't like getting their pay cut. So economists invented a way to rob them while giving them nominal wage raises!

Wages are just the price of labor. Our currency is worth less, so employees are demanding more in dollar terms for their labor.I feel like people misunderstand/misrepresent what the fed officials say about the relationship between wages and inflation. The Fed doesn’t want to create unemployment or directly reduce wages. The ideal scenario is to curb inflation while keeping unemployment as low as possible (which is at a record low atm).Raising rates restricts the supply of credit, whic

This is just flatly wrong. The head of the Federal Reserve has been very clear that he considers wage growth to be the principal contributor to inflation, and "combating wage growth" to therefore be an important part of decreasing inflation. What do you think "combating wage growth" means if not lowering wages and increasing unemployment?

That's a feature, not a bug.The government reaction to the 2021 economic circumstances was to counter the hot job market, not inflation. It is explicitly and legally the mandate of the federal reserve to target maximum employment first, and 3% inflation if possible.Inflation has been normal for a while now by most metrics, but rates are still sky-high to crush worker power. This may not be the stated goal, but it is the actual outcome we can see.The purpose of a system is what it d

isn't it the case that inflation exceeding wage growth is effectively shrinking wages?

Raising lower end wages coupled with inflation would have the same effect, wouldn't it?

Can't read the full article but the headline seems to say that the fed is hoping for wage increases to slow, but that would be because they have tightened monetary policy. That's different from the fed chair getting up and saying "Workers, please ask your boss to pay you less so we can fight inflation."Note that the main transmission mechanism of monetary policy in fighting inflation is basically putting people out of work, to the extent of provoking a recession if need be

One of the main mechanisms by which inflation stimulates the economy, is that it lowers wages (because of sticky wages) hence decreasing unemployment. So intentionally raising wages as a form of stimulus seems counterproductive. Could you explain your argument more?

Inflation isn't sentient, it doesn't "target wages". Inflation is a property of the economy, and it reduces the value of literally everything.