, 2022, and 2023, respectively. - 3affected by the pandemic, especially goods. in this view, as the pandemic abated, our dynamic and flexible economy was likely to adapt fairly quickly. supply disruptions and shortages would diminish. labor supply would rebound, aided by the arrival of vaccines and the reopening of schools. elevated demand for goods would shift back to services. inflation would ease reasonably quickly without the need for a significant policy response. 4 indeed, although monthly core pce inflation spiked in march and april of 2021, beginning in may it declined for five consecutive months, providing some support for this view ( figure 2 ). but in the fourth quarter of 2021, the data clearly changed amid waves of new covid - 19 variants, with only gradual progress in restoring global supply chains, and relatively few workers rejoining the labor force. that lack of progress, combined with very strong demand from households, contributed to a tight economy and a historically tight labor market, and more persistent high inflation. the committee signaled a change in our policy approach, and financial conditions began to tighten. a new shock arrived in february 2022, when russia invaded ukraine, resulting in a sharp increase in energy and other commodity prices. when we lifted off in march, it was clear that bringing down inflation would depend both on the unwinding of the unprecedented pandemic - related demand and supply distortions and on our tightening of monetary policy, which would slow the growth of aggregate demand, allowing supply time to catch up. today, these two processes are working together to bring inflation down. the fomc has raised the federal funds rate target range by 5 - 1 / 4 percentage both the june summary of economic projections and the august survey of professional forecasters showed a near - uniform view that the incipient inflation would pass quickly and that inflation for 2022 would run near 2 percent. neither the forecasters nor policymakers foresaw more than a modest tightening of monetary policy. - 4points and reduced our securities holdings by more than $ 1 trillion. monetary policy is in restrictive territory and putting downward pressure on demand and inflation. the unwinding of pandemic - related supply and demand distortions is playing an important role in the decline of inflation. for example, wage growth has steadily fallen by most measures since mid - 2022 ( figure 3 ), despite continued robust job gains, reflecting a resurgence in labor supply thanks to higher labor force

same period, foreign corporations'ownership or control of affiliates in the united states rose even faster, though from a lower level, from 4 percent of u. s. gdp to 14 percent. since 1988, employment in u. s. operations of foreign corporations has risen by 2. 3 million jobs to a total of 5. 4 million, or roughly 5 percent of total u. s. employment. 20 a relatively recent development in international direct investment is the rise of multinationals that have grown out of emerging markets, including companies such as mittal steel, hyundai motors, and the haier group of home - appliance makers. see, for example, stephanie overby ( 2003 ), " the hidden costs of offshore outsourcing, " cio magazine, september 1, and paul j. davies ( 2005 ), " outsourcing : get a grip on all the links in the chain, " financial times, april 18. international labour organization ( 2003 ), statistics on occupational wages and hours of work and on food prices : october inquiry results, 2002 - 2003 ( geneva : ilo ). minimum ( mexico ) and average ( pakistan ) wages differ by industry and skill level ; these comparisons are based on a broad range of unskilled and semi - skilled job classes. average u. s. manufacturing wages are roughly three times the u. s. minimum wage. b. r. mitchell ( 1998 ), international historical statistics, 1750 - 1993, 3 vols. ( london : macmillan ). the three volumes are on the americas, europe, and asia, respectively. these data end in 1993, but there has been no widespread increase in official tariff rates in these countries since then. see james e. anderson and eric van wincoop ( 2004 ), " trade costs, " journal of economic literature, vol. 42 ( september ), pp. 691 - 751. u. s. department of commerce, bureau of economic analysis. the economic implications of globalization : pro and con what does globalization mean for workers and investors? what does it mean for consumers and producers? i cannot claim to give you a complete answer. and if i could, it would make for a very long speech. so let me cover just a few areas. one of the most obvious effects of globalization is the introduction of new brands and products from foreign countries. the benefits of greater selection and variety are immediately obvious to the consumer. but the benefits go deeper than the surface. opening up