So I don't think that they're willing at this point in time until they really
see wage inflation for whatever reason they're going to hold real yields at neutral, zero.
Not exact matches
You may
see inflation remain below target, you may
see a lack of
wage pressures, and you could be in a relatively steady state like that for some time possibly.
Further rises in the cost of basic inputs such as energy have since driven consumer
inflation up, even though the country has the same weak
wage dynamics as those
seen elsewhere in the developed world.
Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he
sees little risk of
inflation that would prompt the Fed to raise rates faster than expected, and takes weak
wage growth as a sign that sidelined workers remain to be drawn into jobs.
Forget
inflation fears — Federated
sees earnings as the market story of year Fed's Quarles says it's been «quite some time» since the economy looked this good Fed
sees economy past full employment but with only «moderate»
wage gains
They
see flat
inflation and
wage stagnation as signals that the economy still has a ways to go before needing a big shift in monetary policy.
Based on projections, we think the United States is likely to
see solid growth, low
inflation and limited
wage growth, while in Europe the economic expansion can become further entrenched.
We intend to closely monitor nominal
wage growth to
see if any pickup in it can help boost
inflation.
But just because you don't
see wage pass - through to prices doesn't mean that full - resource utilization, as proxied by low unemployment, won't drive up
inflation.
Ultimately, we
see the dollar weakening against the euro as real rates in the Euro Zone become more positive and strengthen versus the yen because
inflation in Japan is picking up due to accelerating
wage growth.
When, you know, people look at history and look at the traditional economic models that said, «This sort of growth, this sort of
wage, you know, 4 % unemployment rate, my God, you're gonna
see this sort of
inflation.»
If unemployment continues to move down and job additions remain at anything close to the strong pace we have
seen over the past couple of years, we think it should translate into
wage inflation moving up.
Given that U.S. growth has firmed and headline payrolls has been solid,
inflation (specifically
wage growth) has been the missing key for the Fed; accordingly most attention will likely fall on the average hourly earnings data which is
seen rising slightly
Within the
wage share of the economy â $ «which includes everyone from chief executive officers to servers â $ «only the average top -1-per-cent earner
saw enough income growth to outpace
inflation between 2009 and 2011.
All of this money hitting the economy at once will cause
wage inflation, and until the effects of the investment take hold in productivity increases, we will
see inflation.
It would actually be fun to
see a full employment situation with companies forced to respond to
wage inflation by making productivity investment rather than the fed tapping on the brakes.
In a scenario with a reasonably benign world environment, these factors could
see a strengthening of demand pressures and hence upward pressure on
wage and price
inflation.
You were saying just immediately come through in terms of bonus payments and some increase in wages, but they want to
see on a sustained basis and so, getting some of those
wage indicators, average hourly earnings, things like that on an upward trajectory, not as flat, but upward trajectory over the next quarter or two, will actually give some sustenance to the Fed to actually continue to move forward, which they likely will, but I am saying that's really what they are focused on in terms of that
wage — in terms of that
inflation metric.
The Fed rate statement also noted that «market - based measures of
inflation compensation remain low», a reference to soft
wage growth, which is at 2.7 %, lower than the 3 % rate that the Fed would like to
see.
Indeed, the proper interpretation of the Phillips Curve is one that relates the rate of unemployment to the rate of real
wage inflation, not general price
inflation (
see Will the Real Phillips Curve Please Stand Up?
The way the AWPA
sees it, that means the resources sector needs to get on with the task of training the people it will need to ensure it is not left exposed to the risk of the sort of
wage inflation that has undermined the return metrics of so many of our biggest projects.
The real issue is I
see little hope that the reimbursement will continue to rise as fast as food and
wage inflation, particularly in higher cost metropolitan areas.
Most upstate regions
saw wage growth that outpaced
inflation during the period, and the Finger Lakes had the highest average annual wages among the upstate regions, at just over $ 63,000.
States also have different minimum
wage requirements which can unevenly distribute wealth among the states and also cause the
inflation seen in high - price states.
He also suggested replacing the
wage inflation adjustment with the more slowly - growing price
inflation adjustment, and imposing a form of means testing so that people with other sources of income in retirement would
see their Social Security retirement benefits reduced.
But some people in the lower 60 % of the income spectrum have a lot of credit card debt, and their incomes are precisely the incomes that have not
seen much if any
wage inflation.
While employees
see a benefit in the rise of minimum
wage, it might not be all it's cracked up to be as the cost of the
inflation is about to rise by 50 percent for goods and services in the same short time frame, equaling, at minimum, $ 1,300 per household per year.»
There are clear signs of skills shortage in the graduate jobs market, in engineering and parts of financial services, and the Office for National Statistics has noted that professional level roles are
seeing wage rises above
inflation.
«While the increase in rates by the Fed has been well anticipated given the progress
seen in unemployment, low
inflation and
wage growth are still a concern, and we anticipate they will move forward cautiously in the second half of the year given the asymmetric nature of policy available to counteract an economic slowdown versus a nascent acceleration in
inflation.»
If we're
seeing inflation increase, that's primarily due to
wage growth.