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US Fed Funds Target Rate vs. Wage Growth 

Fed Pivot Becomes Fed Prayer
Franklin Templeton, Insights, Fed Pivot Becomes Fed Prayer, March 30, 2022

US Fed Funds Target Rate vs. Wage Growth 

Data as of December 2021

ftis-fed-pivot-ex1

LHS = lefthand side    RHS – righthand side

Sources: Federal Reserve, US Bureau of Labor Statistics, Macrobond. Important data provider notices and terms available at www.franklintempletondatasources.com.

 

"The Fed has dual mandates of maximum employment and stable prices. One indicator where these goals intersect is wages, as a very tight labor market would create upward pressure on wages. Today, we see many signs the Fed is behind the curve."

This chart and excerpt are sourced from Franklin Templeton's report dated March 30th 2022, Fed Pivot Becomes Fed Prayer.