Fed officials favoring persistent stimulus can find ammunition in weak wage growth, said Tim Duy, a professor at the University of Oregon in Eugene and a former U.S. Treasury Department economist.
“Although a solid report, the doves can still lean on persistent underemployment and, in particular, subdued wage growth,” he said. “Wage growth is the kind of evidence of tighter labor markets that would have a more dramatic impact.”
Still, “this report suggests that the risks are weighted more toward the second quarter than the third,” he said, referring to the probable timing for the first increase in the main interest rate.
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