This nifty indicator could determine when the Fed will stop lifting interest rates

“Given changes in wages and salaries are influential on both inflation and household consumption, it helps explain why the Fed is continuing to increase interest rates given recent trends” writes Business Insider Australia for Should that continue, it will likely continue to tighten policy settings in the period ahead. Conversely, should recent trends start to stall, it will point to a potential turn in the outlook for GDP growth and inflation, a scenario that will likely see the Fed change direction in terms of the outlook for policy settings.

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