This is what we have been waiting for since 2009.

Wage growth is here.

On Friday, we learned that wages grew 0.3% month-on-month in May and rose 2.3% over the prior year. And over the last 3 months, wages have risen at an annualized pace of 2.9%.

In May, the economy added 280,000 jobs, more than expected, while the unemployment rate ticked up slightly to 5.5%.

In an email shortly following the report, Deutsche Bank economist Torsten Sløk said that this moment is what the economics community, and the Federal Reserve, have been waiting for.

"We started writing about wages a year ago," Sløk wrote, "and over the past 12 months the Employment Cost Index has been trending higher and we are now also seeing average hourly earnings growing at the fastest rate in five years."

Sløk added: "This should put upward pressure on the entire yield curve and the dollar going forward. For equities it is positive because higher wages means higher household income, which means more demand in the economy and ultimately higher topline growth for corporate America. This is what we have been waiting for since 2009. In other words, the virtuous cycle has begun."

Here's Sløk's chart. A huge moment for the economy.

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