Something I had to post even if no one reads it

This is a quote from an AP article today:

"The Federal Reserve is keeping close tabs on the performance of productivity and unit labor costs for any signs that slowing productivity and rising wage pressures are having an adverse impact on inflation. The hope is that businesses will meet worker wage demands by trimming their record profits rather than boosting the cost of their goods."

The last line is the one that cracks me up. It's nice and all, but what is the incentive for companies to trim profits instead of boost costs? Obviously costs can't be raised infinitely because there is a price point at which people (or enough people) won't pay for the service or good. Until that point is met, of course they will raise costs. It's ridiculous to think that out of the goodness of their hearts they'll cut profits? Does our government really think this?

Okay, I'll concede that maybe a few places will play along, privately held companies who are looking to improve their image, maybe pro-community places like Tom's of Maine, or amazing businesses like digital bazaar.