Federal Reserve Chairman Jerome Powell says that economic pain will be inevitable in the Federal Reserve’s fight against inflation. As he put it, “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.”

Powell was not joking. Consumers are being squeezed hard by the highest inflation rates in 40 years. Over the past year, adjusted for inflation, real hourly wages are down 3%. And because of a decline in hours worked as the economy slows, real weekly earnings are down even more, 3.8%.