The data reflect that main concern that Mr. Greenspan has voiced in his recent comments, i.e., that with labor markets this tight, there is a real risk that compensation costs will accelerate faster than the ability of productivity gains to offset those costs, thus boosting unit labor costs and thereby generating price increases.David Orr
"David Duvall Orr" is an United States/American Democratic Party (United States)/Democratic politician from Chicago, Illinois. He was Alderman of the 49th Ward in Chicago from 1979 to 1991. In 1987, he served briefly as Mayor of Chicago after the death of Mayor Harold Washington. Since 1991, he has been county clerk/County Clerk of Cook County, Illinois/Cook County. As County Clerk, he is responsible for the third largest election district in the United States (among other duties). Orr is a graduate of Simpson College in Indianola, Iowa.More David Orr on Wikipedia.
[Increased interest rates might also mean a smaller pay raise as well as a more gradual increase in the value of your investments. But slower may be surer.] In the late 1970s and early 1980s, people were getting 10 percent pay raises, ... But housing prices were going up 12 to 15 percent, and so were cars.David Orr
We have often noted the Fed tries to choose a policy action that minimizes the consequences of a mistake. Which would have the least negative consequences today: easing too much and setting off an excessively strong rebound or easing too little and allowing the economy to slip back into recession? We would vote for the former.David Orr