Goldman Sachs highlight the wage growth figures in Friday's non-farm payroll report:
GS suggest that the wage data is showing wage growth still at a strong level, clearing up doubt for the Federal Reserve. The Fed is looking for wage growth to ease back a little, and the data show it is not.
- “The overall message is that wage growth is going sideways at a rate that is probably a couple of percentage points stronger than what would be compatible with achieving 2 per cent inflation”
- “The Fed has even further to go than we thought before today.”
GS maintain their projection for a 50bp rate hike at the September 20-21 FOMC meeting.
Earlier:
Wages growing, graph via Reuters:
