The Federal Reserve can contribute to closing gender and racial wage gaps by setting a clear target for wage growth and not considering an interest-rate hike until wage growth has strengthened. In Mind the Gap: How the Federal Reserve Can Help Raise Wages for America’s Women and Men, CPD director of strategic research Connie Razza and EPI research and policy director Josh Bivens recommend that the Federal Reserve pursue genuine full employment. Better wage growth is crucial to ensure that gender and racial wage gaps close (for the right reasons) with wages rising for all groups but more rapidly for currently disadvantaged groups.
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