But Carpenter said
current wage inflation in the U.S. is not far from where it should be.
Not exact matches
As they won
wage increases higher than the
current rate of
inflation they would, for a short time, gain real
wage increases.
Price adds that the
current minimum
wage, in New York state and nationally, has scarcely kept pace with
inflation.
The
wage pop [last Friday's 2.9 % growth in hourly wages] spooked the markets because investors, already skittish as valuations were a bit steep (though not as bad as people have been saying, given strong
current and expected corporate earnings), envisioned this sequence:
wage growth gooses price growth (i.e.,
inflation), which raises both market and Federal Reserve interest rates, which slows growth and shaves corporate profit margins.
If one assumes Mr. Rosengren allows the economy to hum along at the
current levels (a big if since he wants to raise rates), a average 2.5 %
wage gain less 2 %
inflation makes you wait three more years to get back to 2007 (a lost decade plus two) and five years to party likes it's 1999 (two lost decades, plus one).
-- Chair Yellen has maintained that
wage growth consistent with stable
inflation is 3 - 3.5 %, at least a point faster than the
current rate (btw, why 3 - 3.5 %?
If the Fed were to continue hiking rates based on the
current low rate of productivity growth for fear that
inflation would accelerate, that would tend to keep productivity growth permanently depressed by preventing
wage pressures from pushing businesses to investment in productivity boosting technologies.
The
current landscape of subdued
inflation and
wage growth supports this.
Without the Federal Reserve's intervention, Mr. Paulsen says, the 10 - year Treasury yield would be in the vicinity of 4 percent based on
current levels of economic growth, core
inflation and
wage growth.
In today's UK market, the cap rate distribution curve has flattened out, consumer and
wage inflation is out of synch, and investors are not getting paid enough to take core risk as there is little prospect for net operating income (NOI) growth in the
current lease regime.
Assuming
current official forecasts for
wage growth and
inflation are correct, Brown said there would be 5.1 m children living in poverty — or 35.7 % of the total — by 2021 - 22.
Again, without going into all of the details, our work suggests that problematic
wage inflation in the
current environment is roughly three and a half to four percent on a year over year basis.
And we haven't even covered
wage increases,
inflation, or changes to your
current lifestyle.
«National median home prices began their most recent rise during the first quarter of 2012 but had climbed to unsustainable levels given the
current pace of
inflation and
wage growth,» he explains.