Comments from WSJ Fedwatcher Jon Hilsenrath after non-farm payrolls:
"The robust job market keeps the Federal Reserve on track to alter its guidance on interest rates at its policy meeting this month and debate whether to start raising short-term interest rates in June.
Still, there's no guarantee the Fed will move by midyear. Officials want to see how output, employment and inflation unfold before acting. They remain concerned that inflation is running below their 2% inflation target.
At $24.78, average hourly earnings for private-sector workers rose 2% in February from a year earlier. That's exactly in line with the modest 2% average over the past four years. "There are perhaps hints," Ms.Yellen told the Senate Banking Committee on Feb. 24, "but we've not seen any significant pickup in wage growth"
What's abundantly clear now is that the Fed will remove 'patient' from the statement later this month. Yellen went to great pains to indicate that doesn't necessarily mean rates will rise in June and that will continue to be the case. Going forward, any sign of wage growth will be enough to inspire a Fed hike.
