More Money

MoneyGDP grew by a healthy 3.5% in Q3, but better yet the employment-cost index, a broad measure of wages and benefits, rose by 0.7% in Q2 and in Q3 its best performance since 2008. Wages and salaries rose by over 5% annually-adjusted in Q3. Importantly these wage increases aren’t leaching into inflation, which is just 1.5% Y-o-Y. Therefore, the Fed is under no pressure to raise interest rates anytime soon.

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