More than once, I have heard on the news how the US Federal Reserve would raise interest rates to counter the risk of inflation, even when they indicate that the potential inflation would be caused by "wage pressure".
I can understand why the wealthy disapprove of inflation -- it causes the value of their wealth to decrease -- but for the poor, this is not a significant concern. And if (for example) the price of products are 50% due to labor, doubling the salary of that labor would only increase their cost by 50%, while the workers who were paid that salary could buy twice as many products. Mathematically speaking, then, I would expect prices to asymptotically approach some new value at a rate of e^(-k/t), not spiral into hyperinflation.
What am I missing here? Is inflation due to wage pressure really a bad thing for the general population, or is this a case of the Federal Reserve bowing to the will of those few who would benefit the most?