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Economics, In Two Charts

Economics, In Two Charts
Finance1 min read

One of the most important questions in economics is whether or not wage pressure is starting to rise. If it is starting to rise, then that could be a signal that the Fed will soon feel pressure to tighten policy. If wage pressure is not going anywhere, then the Fed can remain "easy" for a long time.

So how do economists feel about the wage question?

These two charts - which just came out today - make it very clear. The first is from Bank of America, and it states that average hourly wage growth is sluggish, in their words. (Via Steve Feiss)

average hourly earnings

Bank of America

On the flipside, here's Deutsche Bank's Torsten Slok on how wages are shooting up!

Screen Shot 2014 04 22 at 9.46.35 AM

Deutsche Bank

Glad that's cleared up.

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