Fed eyes sluggish wage growth

The Federal Reserve is facing a dilemma: inflation remains stubbornly high, but wage growth has stalled at just 3.4% year-on-year, falling short of the 4%+ price increases consumers are experiencing. This gap means workers are effectively losing purchasing power, even with a nominal pay raise. Economists argue this sluggish wage growth is a silver lining for the Fed, as it may help cool inflation without needing to raise interest rates further—especially amid uncertainty over whether the ongoing Iran conflict will keep driving prices up. Meanwhile, consumers are adapting by cooking from scratch, a trend benefiting companies like Campbell's, and some are even moving entire historic homes across Los Angeles to rebuild after wildfires. One architecture firm is pioneering this 'house relocation' model, buying homes slated for demolition for a dollar and reassembling them in fire-affected neighborhoods—costing around $900,000 total but still cheaper than new builds. On Wall Street, Bending Spoons, a tech company that owns legacy brands like AOL and Vimeo, is preparing for a 2026 IPO by consolidating operations and monetizing user data from dormant accounts. In Chicago, a theater owner is thriving by pricing tickets so low they’re cheaper than a trip to the park, proving that passion and low-cost models can still succeed in a tough economy.