Relevant:
- U.S. Productivity Fell for Third Straight Quarter (LABOR MARKET MORIBUND DESPITE "JOBS" NUMBERS)
- Yellen: Fed's Rate Policy Hinges on 3 'Big Questions'
- Yellen Facing Hard Call on When Labor Market Has Healed
- U.S. job growth slows in August; wage growth retreats (YOUR MOVE, FED...)
- Despite "Good" GDP Print (2.6%??!!!), Wages Continue to Lag (FLUMMOXING FED)
2016-02-08 — cbsnews.com
The problem is that the labor market seems to be tightening -- despite a comedown in the pace of U.S. economic growth as well as slowing corporate earnings growth. The labor tightness is resulting from falling productivity, fewer qualified applicants and the still-low percentage of Americans in the labor force. Wage inflation is also on the rise.
Taken together, all of this feels a little "stagflation-y" because it suggests the economy could get the job and wage gains we've been waiting for, but in a way that's bad for the stock market and the overall economy. If that dynamic deepens, Yellen will have no easy policy prescriptions...
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