Column-Fed hangs tough as wage growth gets real again: Mike Dolan.
If markets are wondering why the Federal Reserve just won’t play ball with their ‘peak interest rate’ pricing, the answer probably lies in the resumption of U.S. real wage growth.
Investors were unnerved this week by Fed policymakers insisting the central bank would push on with plans to raise rates above 5% this year despite mounting evidence that disinflation has taken hold and the economy is stalling.
The Fedsters were merely sticking to their guns.
None seem to see a reason yet to change the collective indication from last month’s policy meeting of a Fed ‘terminal rate’ around 5.25% by midyear – compared with today’s 4.25-4.50% target.
