Although the numbers are in line with expectations, the gains will be especially worrisome to Fed board members who see tight labor markets as generating compensation gains that potentially boost inflation.
The statement, as usual, will be important. The Fed is widely expected to maintain a steady policy stance, but is also expected to acknowledge that the risks are still toward higher inflation.
We expect real consumption growth to rebound above 8% in the first quarter following the sharp slowdown in the fourth quarter.
I won't apologize for our success. We got them in a fair system. We work real hard. The problem is you have people who don't even try, and they continue to talk like they're there like we are, night after night, when they're not trying at all.
Our students and customers are increasingly aware of how their food is raised or produced. Moving to Certified Humane cage-free eggs complements our efforts to serve local and sustainable food when possible.
The day of reckoning is upon us. The question that will be answered Tuesday is whether the Fed believes that the recent spate of surprisingly strong inflation data indicates that they no longer have the luxury of taking a more cautious approach.
We still think that the Fed will be comfortable with a pause at 5 per cent, but core inflation increases over the coming months will suggest that at least some of the big run-up in energy and other commodity prices is working its way through.
