Lunchtime Must-Read: Tim Duy: Wage Growth–or Lack of –Continues to Surprise

…surprising combination of solid job gains and decelerating wage growth…. Overall, the story is one of ongoing improvement in labor markets…. Wage growth, however, nosedived…. If June rolls around with no inflation and no greater wage growth, the Fed will find it challenging to begin normalization…. The wage numbers present a dilemma for the Fed. Simply put, no wage growth means the Fed can’t be particularly confident that inflation will trend toward target…. The Fed is still looking at June, but they need some more help from the data. Of course, June is still a long way off…”