Jobs, jobs, jobs (and no wage inflation)

The Week Ending Friday March 9th 2018 A lot of noise was generated about Trump’s steel tariffs and a potential meeting with the North Korean dictator but moved markets very little. The big event turned out to be the February payrolls data. Supposedly weaker than expected wage growth was accompanied by strong job creation than expected. A goldilocks scenario of higher real growth with little inflation risk. Equities surged yet the USD and bonds remained steady. Neel Kashkari’s simple, common sense, viewpoint seemed to be the one the markets followed despite some foolishly hawkish rhetoric from Powell and Brainard: “We…

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