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
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.