Fed shouldn’t use wages as beacon

For years, the US Federal Reserve steered monetary policy in part by wage growth: drive slack out of the labour market and higher wages, and therefore inflation, should follow. But fishing for inflation in this recovery, the Fed has been using the wrong bait, reading the water incorrectly and getting no bites. I look at why wages aren’t growing and why inflation wouldn’t accelerate even if they did: https://www.ft.com/content/821ee35c-a7a5-11e9-90e9-fc4b9d9528b4

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