Quick thoughts on inflation

Why the Fed is likely to raise rates, despite low inflation
This is a nice read for perspective from someone who believes inflation is still too weak for a rate hike. Quickly, as can be seen below, we’ve seen the early effects of wage inflation. This should (at some point) filter through the system and show up on the inflation reading. The one caveat here is if the median is being influenced by the highest paid individuals; which is a possibility.

real wages

And on a related note, this cartoon is rather appropriate.

real wages cartoon

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