Comments from ISM non-manufacturing survey chairman Nieves:
- Labor market remains ‘mixed’
- Hiring taking place as companies reach capacity
- Respondents not seeing much inflation
- Little evidence of building wage pressures
Interesting comments on inflation. For the Fed it’s a perfect scenario of accelerating growth without inflation pressures and Yellen/Dudley have indicated they can tolerate a period of rising inflation pressures before they’re forced to hike.
