price pressures through disruptions to agriculture, shipping, and utilities. many central banks around the world have pivoted monetary policy strongly in order to maintain anchored expectations and forestall second - round effects from high inflation becoming embedded in wage and price setting. in the united states, the federal reserve has increased the federal funds rate target range by 300 basis points in the past seven months - a rapid pace by historical standards - and the federal open market committee's most recent summary of economic projections indicates additional increases through the end of this year and into next year. in addition, beginning this 1 / 5 bis - central bankers'speeches month, balance sheet shrinkage accelerated to its maximum rate of up to $ 60 billion in treasury securities per month, and up to $ 35 billion in agency mortgage - backed securities per month. broader u. s. financial conditions have tightened rapidly : the 10year treasury yield has risen more than 200 basis points since the beginning of the year and is near its highest level in over a decade at 3. 8 percent. at a global level, monetary policy tightening is also proceeding at a rapid pace by historical standards. including the federal reserve, nine central banks in advanced economies accounting for half of global gdp have raised rates by 125 basis points or more in the past six months. 2 global financial conditions have likewise tightened. yields on 10 - year sovereign debt in the united states, canada, the united kingdom, and the largest euro area economies are higher year to date between 170 and 350 basis points. it will take some time for the global tightening to have its full effect in many sectors. while the effect on financial conditions tends to be immediate or even anticipatory, the effects on activity and price setting in different sectors may occur with a lag, with highly interest - sensitive sectors such as housing adjusting quickly and less rate - sensitive sectors such as consumer spending on services adjusting more slowly. in addition to the domestic effects from domestic tightening, there are cross - border effects of tightening through both trade and financial channels. u. s. monetary policy tightening reduces u. s. demand for foreign products, thus amplifying the effects of monetary tightening by foreign central banks. the same is true in reverse : tightening in large jurisdictions abroad amplifies u. s. tightening by damping foreign demand for u. s. products. tightening in financial conditions similarly spills over to financial conditions elsewhere, which amplifies the tightening effects. these spillovers across jurisdictions are present for decreases

or $ 11. 06 per hour. 5 today, about one - quarter of all workers are considered “ low wage. ” they are sanitation workers, office receptionists, and nursing assistants ; they are single mothers of three who worry : how will i be able to send my children to college? what if my landlord raises the rent this year? tens of millions of americans are the people who ask themselves these questions every day. this diverse group of workers faces numerous barriers when trying to access the labor market or advance in their current positions. many of these barriers were identified in an initiative that the federal reserve ’ s community development function launched in 2011. over the course of a year, reserve banks across the country hosted a series of 32 regional discussions aimed at examining the complex factors creating chronic unemployment conditions and identifying promising workforce development solutions. 6 the kinds of problems faced by low - wage workers are familiar to all of you and have long been part of the structural conditions of poverty and near - poverty in america. we know, for example, that location presents thorny challenges for many low - wage workers. within metropolitan areas, jobs are not spread out evenly and job creation tends to be depressed in low - income communities. as a result, many low - wage workers face long commutes and serious commuting difficulties due to less reliable transportation and an inadequate transportation infrastructure. moreover, a number of low - wage employees work non - standard hours, exacerbating both transportation and childcare issues, as well as personal health problems. 7 see national employment law project ( 2012 ), “ the low - wage recovery and growing inequality ( pdf ), ” data brief, august. these patterns were also observed during the recessions of the early 1990s and early 2000 ’ s – the so - called “ jobless recoveries ” – but not prior to then. on average, a person ’ s income remains depressed for decades following job loss, and income losses over one ’ s working life are especially severe when the job loss occurs during a recession. see steven j. davis and till von wachter ( 2011 ), “ recession and the costs of job loss ( pdf ), ” brookings papers on economic activity, september 12. see rebecca thiess ( 2012 ). “ the future of work : trends and challenges for low - wage workers ( pdf ), ” epi briefing paper, april 27. see board of governors of the federal reserve system ( 2012 ), “ a perspective from main