The Labor Market remains “Strong”

Powell is in the same corner as Yellen. According to Powell: “Inflation is a little bit below target, and it’s kind of a mystery,” he told CNBC in August. “You would have expected, given that we’re getting tighter labor markets, that we’d have a little higher inflation. I think that what that gives us is the ability to be patient.” When he takes over in February, he can sit on his hands and wait! For a long time we cannot see any relation between the two, as the chart illustrates. For the last two years, wages have remained docile, just as…

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