Wage Inflation Does Not Just Explode

The NYT had an interesting piece presenting the argument that the Federal Reserve Board should focus on wage inflation rather unemployment, not beginning to tighten up until wage inflation started to get above 3.0-4.0 percent, a rate consistent with its 2.0 percent inflation target. The piece included a counterargument from Torsten Slok, chief international economist at Deutsche Bank Securities, that if the Fed waited until it saw rising wage growth it would be too late. Inflation would...