Too much of a good thing, in the form of rapidly rising wages, is expected to push Federal Reserve interest rate hikes at an even faster pace. Average hourly earnings jumped 0.7% in January and are now running at a 5.7% pace over the past 12 months, according to Labor Department data released Friday. Excepting a two-month period during the early days of the pandemic, that is by a wide margin the fastest-ever move in data going back to March 2007. While that has come as welcome news to workers, it’s posed a further quandary for the Fed, which increasingly is being seen as falling behind in terms of policy and having to catch up to inflation that is running at its fastest pace in nearly 40 years.
Source: CNBC – Bonds
