, Columnist
Welcome to the Post-New Normal Era in Markets
With higher U.S. wage inflation, market participants will begin to doubt the Fed can remain committed to "gradual normalization."
It's getting volatile.
Photographer: Scott Olson/BloombergGet ready for the post-new normal.
Recent market volatility reflects more than just an unwinding of positions or the failure of a few esoteric volatility products. The catalyst for the selloff arrived on Feb. 2 in the form of higher-than-expected U.S. wage inflation. Although a few data points aren't conclusive evidence, it won't be long before market participants begin to doubt the Fed can remain committed to "gradual normalization." The implications of such a shift in sentiment cannot be overstated.