Fed Chairman Powell said low wage growth is a bit of a puzzle
Fed Chairman Powell said low wage growth is a bit of a puzzle in a radio interview on marketplace.org, though analysts're starting to see wages go up as markets tighten and the economy is in a really good place. He also has had no indication from the Trump Administration that the Fed's independence is at risk. Powell is also not yet declaring victory on achieving the 2% inflation goal. That said, the labor market is strong by any measure and the Fed is close to its dual mandate. If lower tariffs are achieved with trade policy, that's good for the economy, but if higher tariffs remain, that's bad. Indeed, it would be very challenging if inflation rises while the economy weakens (stag-flation). Overall, it appears he's still willing to let the economy run a bit on the jobs front, while keeping an eye on inflation, in line with the gradual normalization in vogue.