2.9%! (Good news for Yellen)

The recent wage report presents very good news for Janet Yellen:

It might have been slightly impacted by the hurricanes, but the loss of 100,000 low wage hospitality jobs in a 150,000,000 strong labor force isn’t very significant for aggregate hourly wages.  And that’s not just my view, the markets feel the same way:

Yellen is on a glide path to near perfection, as she will probably end her term achieving the Fed’s dual mandate better than any other chair in history.

So let’s replace her with someone lacking qualifications and a history of bad logic and bad judgement!



6 Responses to “2.9%! (Good news for Yellen)”

  1. Gravatar of msgkings msgkings
    6. October 2017 at 08:30

    Plus she’s just a diversity hire. Now that Trump has slain the PC dragon, we can stop giving ladies important jobs.

    But seriously, I hope someone talks Trump into keeping her (not likely but that’s my hope). He does listen to a few people.

  2. Gravatar of John Hall John Hall
    6. October 2017 at 09:01

    I think one of the reports said that the strong growth in earnings was due to overtime pay for utility workers.

  3. Gravatar of H_WASSHOI H_WASSHOI
    6. October 2017 at 15:21

    It is difficult for me to understand ironies of English language.

  4. Gravatar of Benjamin Cole Benjamin Cole
    6. October 2017 at 16:59

    Well…this has also been the slowest recovery from a recession in US history.

  5. Gravatar of Bob Murphy Bob Murphy
    9. October 2017 at 09:54

    Hi Scott,

    Can you please clarify: Are you saying that Yellen’s near-perfect hitting of the Fed’s dual mandate shows how messed up the dual mandate is, or are you genuinely impressed with the economic performance during Yellen’s tenure?

  6. Gravatar of ssumner ssumner
    9. October 2017 at 10:01

    Bob, Neither. Monetary policy has been increasingly good, but of course lots of other (supply-side) policies need improvement.

    It’s not the Fed’s job to produce a good economic performance; it’s their job to produce stable nominal growth. You can have that with zero RGDP growth.

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