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Bank of America (BAC) has announced its plans to raise the company's minimum hourly wage to $23 in October. The objective is to achieve a minimum employee wage of $25 by the year 2025. Currently, the federal minimum wage stands at just $7.25, though Senators have proposed a bill that would gradually raise the minimum wage to $11 over the next four years. Yahoo Finance's Rachelle Akuffo speaks with Public Policy Professor Betsey Stevenson of the University of Michigan's Ford School to discuss the big difference between federal and corporate minimum wages, and how factors like inflation could impact wages.

"While legally you can get away with paying somebody $7.25 an hour," Stevenson says, "you're gonna have a very hard time finding very many people who are gonna wanna do work for you at $7.25 an hour."

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