Wages are showing their fastest gains since the last recession ended. Average hourly earnings advanced by 2.9 percent over the 12 months ended in December, the most since June 2009, following a 2.5 percent boost the prior month.
This is not what a recession looks like.
It looks, rather, like price inflation is starting to heat up. The idea that the Fed will cut rates under these conditions is absurd and only held as a serious view by the most delusional Austrian-lites.
-RW
At what point will the wage and price inflation be considered recessionary? If the Fed never hikes rates fast enough to effectively combat the inflation, and inflation begins to spiral out of control with wages skyrocketing along with the stock market, commodity prices, and bond yields, when will that dynamic be considered recessionary as opposed to a boom phase in the business cycle? In other words, when does the boom phase morph into the beginnings of the crack-up-boom?
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