Strong jobs report shows wage growth
Today, the Los Angels Times reported that “Employers added 257,000 net new jobs in January as hourly earnings increased’. I expect that this information, along with low energy prices, rising housing prices and extremely low interest rates will likely be the catalyst for the Federal Reserve’s Board of Governors to begin raising the discount rate later this calendar year. Already, minutes released from past meetings suggest that there is a contingent among them that wants to begin taking action now, before inflation rears its ugly head. Their logic is not faulty. Like a super tanker at sea, it takes a long time before the the Federal Reserve’s actions have an impact on the economy’s course. To view the entire article from the Los Angeles Times CLICK HERE
