Another sign higher for longer is back:
According to the New York Fed, wage inflation is sticky around 5%.
This is more than double the Fed's long-term 2% target that they continue to stand by.
Needless to say, 5% wage inflation should not come as a surprise after the latest inflation data.
CPI inflation is now up for 2 straight months and PPI inflation nearly doubled year-over-year.
We are not ready for lower rates yet.
So now the US economy has:
1) Dropping confidence
2) 4 months of hotter inflation
3) $2 trillion annual deficits
4) ~$34.5trillion in debt
5) ~1.5 million full-time jobs decline with 1.9M part-time jobs created over a year
What could possibly go wrong?
Comments