Will The Fed Hike Rates in 6 Months?
Even if we see some gradual increases in energy prices (which may take some time), inflation measures may remain significantly below the Fed’s target for a while. So what could prompt the Fed to act in the next few months? Some argue it will be wage pressures.
While we’ve had a number of forward looking indicators pointing to higher wage growth ahead, we haven’t seen that trend in the official figures thus far. Americans are certainly working longer hours, but the pay per hour continues to grow at 2% per year. That in no way constitutes wage pressures – at least not yet