@jessicainskip: Replying to @ghottighuett love this question! The cost of labor absolutely impacts inflation. As costs go up it adds pressure to profit margins, companies are ALWAYS going to focus on making profits. Therefore, as their expenses increase they will raise prices protecting profit margins and making record profits…. As long as the consumer is still spending. The affects of FOMC policy take time. Increasing interest rates are intended to cause demand destruction… eventually prices will have to come down.