This is absolutely ridiculous, maybe they should start by reducing his salary.

Given the obviousness of the consequences, it's hard to imagine the Greatest Minds In Monetary Policy haven't foreseen the fact that labor is hurt and corporations are effectively subsidized when enacting such policies. So it must be intentional.

> Wages are not comparable to asset prices

They get directly compared when getting a mortgage though - typically there's affordability criteria including the ratio of income to mortgage amount.