Analysts at BMO says today’s non-farm payrolls report “has major implications for the Fed, which would welcome an increase in wage growth to support spending and the expansion.”
“The soft wage trend could work to delay Fed tightening until mid-year, even if the jobless rate looks to crash through the FOMC’s full employment range of 5.2% to 5.5% before then.”
I wouldn’t exactly call waiting until mid-year to tighten a ‘delay’. It’s basically the earliest realistic time the Fed may hike.
Still, it’s evidence that the wage component of the jobs report is at least as important as jobs growth.
