The US might target higher real-wages # 2....

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 The US might target higher real-wages....

The central-bank could commit higher real-wages through tighter labour market and low inflation and inflation expectations through low interest-rate when unemployment is below the natural-rate and there is an upward pressure on the real wages by lowering the borrowing cost, increasing supply and lowering the general-price-level because lower prices would increase the value of money and demand and lower unemployment and higher growth. Higher real-wages could increase investment in people skills and reduce voluntary unemployment and increase the supply of labour and productivity too, it would increase demand and growth... Nonetheless, lower interest rate due to higher supply and lower price-level could increase real-wages-expectations and increase spending and lower prices may help increase savings and investment and the economic-growth rate... Higher real interest-rate, since of lower-prices, would also increase return on capital...A little higher real-interest-rate would save both little, labour and capital and would help lower  demand and prices with a downward bias to make the money strong and valuable to increase demand in the long-run when population growth rate is going down... Higher real-wages in this scenario would help maintain demand/supply and the price-level and the real- GDP... Too much expansionary and too much contractionary policy would increase volatility and in the attempt to control the swings during booms and busts, either we slow too much or grow too much... If the FED tries to stabilize the value of money at the current-level of the prices or increase disinflation or little deflated expectations is would increase the wealth expectations and demand and the economic-growth-rate... Borrowed from the Milton Friedman’s OPTIMAL MONETARY POLICY...  The government too may contribute by increasing the real wages expectations by demanding more labour and help achieve wage-gains... Nevertheless, if the budget increases on infrastructure and skills-development or reduce taxes on the lower and middle-class it could also increase real-wages and expectations and spending – consumption and investment...  When the value of money increases in the economy it affects everybody in the same way by the way of inflation/disinflation/deflation...