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Wage growth clearly responding to low-unemp rate (and non-linearly, at that!). Inflationary threat, right!? [thread] @Neil_Irwin
[Wage data are compilation from five series, so no cherry picking! Nominal, yr/yr growth]
[Wage data are compilation from five series, so no cherry picking! Nominal, yr/yr growth]
To answer that, however, we must consider the extent of wage-price pass-through. Here's the scatter of the same wage series against core PCE inflation (yr/yr), 1983-1995. Plenty-o-passthrough...*Yikes!*
But wait!! We must update our priors based on the data. Here's the same pass-through figure but from 1995 to now. It's random! This fading pass-through is, in fact, pretty widely accepted by many Fed economists.
Thus, we must, in the spirit of Yellen, Powell, Brainard, Clarida, @neelkashkari, et al be data driven and watch the inflation. This is especially the case given the importance of full emp to the real incomes of the many of the wrong side of the inequality divide [end]
