Ticker: Small businesses wary of minimum wage ballot; Fed split on rate hike ahead of June meet

Restaurateurs and small business owners are wary of a looming “threat” of a 2024 ballot question that could raise the state’s minimum wage beyond the $15 rate that took effect in January.

Profitability for restaurants is down in the aftermath of the COVID-19 pandemic, with the biggest impacts stemming from inflation and labor costs, said Stephen Clark, president and CEO of the Massachusetts Restaurant Association.

Lifting the minimum wage by $1 per hour can translate into a $1,000 increase per employee, which sparks a cascading effect for all workers throughout the industry, Clark warned at a small business advocacy day event.

“Truthfully speaking, I don’t think the minimum wage fight is something that’s going to happen this year. I think if we look at the legislative calendar, it’s probably more of a conversation for 2024,” said Clark, as he implored small business owners gathered at the University of Massachusetts Club to discuss the issue with lawmakers at the State House later Wednesday during their lobbying efforts.

Fed split on rate hike ahead of June meet

Federal Reserve officials were divided earlier this month on whether to pause their interest rate hikes at their upcoming meeting in June, according to the minutes of their May 2-3 meeting.

“Several [policymakers] noted if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary” — Fed parlance for a pause — the minutes said. At the same time, “some” officials said that the persistence of high inflation meant that “additional [rate hikes] would likely be warranted at future meetings.”

In the language used in the minutes, “several” is considered to be more than “some,” suggesting that those favoring a pause may have the upper hand.