Comments from the Michigan survey director
- Keeps consumer spending view of 3%
- Very few consumers are borrowing before hike
- Fed needs to be careful not to hurt housing
- Consumers still see 1.8% rise in incomes
- Consumers still complaining about wages
- They see wages as the main concern
- Soft wages remain a sore point
The comments couldn't have come at a more apt time after the employment cost data
As market commentators start guessing and re-guessing their rate hike estimates, the question is whether the Fed will hold back from rate hikes on the current levels of wages?