U.S.: Good News About Jobs Is Bad News To The Fed

Wage gains could start outstripping productivity, reigniting inflation

The Federal Reserve cannot come out and say it directly, but the main reason policymakers want to restrain economic growth is to loosen up the labor markets. To admit that would be political suicide. But the Fed knows that, with markets already so tight, job growth must slow if the economy is to avoid a surge in wages that could trigger a rise in inflation.

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