Inflationary Income

walking-the-edgeYesterday, the Fed came as close as you can to raising interest rates, without actually raising them. Assuming the general election doesn’t send markets into a tailspin, rates rise by 0.25% on 12/14/16. Interestingly, Fed members reduced their expectations about future GDP growth. This means that increasingly tight labor markets and the concomitant rise in wages, and not a faster growing economy are what is expected to drive inflation higher.

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