U.S. wages likely posted a third strong monthly gain to fuel a 3.6% increase in June from a year earlier, according to economists’ forecasts ahead of the Labor Department’s jobs report due Friday. Companies including FedEx Corp. and Olive Garden owner Darden Restaurants Inc. are raising wages to attract staff.
At the same time, prices for everything from milk to car rentals and gasoline are rising at a rapid clip, eating into those income gains. The Federal Reserve’s preferred consumer-price gauge rose 3.9% in the 12 months through May, the fastest since 2008.
Talk about rising prices. Since Biden was elected President, regular gas prices are up 47%, foodstuff are up 44% and hot rolled coil steel is up 149%.
Meanwhile, the US economy added 692,000 jobs (good news) but fewer jobs were added in June than we added in May.
Meanwhile, Atlanta Fed President Raphael “The Boss” Bostic said that while the U.S. has “actually fully recovered” from the pandemic on a gross domestic product basis, “it is going to take some time to get back” on employment, with the economy being about 9-10 million jobs below pre-Covid-19 trends.
Of course, if states cut the enhanced unemployment benefits, that would lead to improved employment number, Raphael.
Optimism about coming out of Covid-hell abounds, but The Fed keeps it foot on the monetary accelerator.