"Wage growth: 4.0% annualized over the past 3 months (a little above where the Fed wants it)"
It is not the Fed's job to want wages to grow faster or slower or not at all.
BTW, Neither the Fed nor anyone else know how fast wages grew because BLS does not produce any wage indexes.
BLS produces unit value indexes, but these are affected by composition of wages within a category as the report itself points out:
"We also saw a January spike in wage growth, caused by a combination of two factors - salaried workers working fewer hours (= higher hourly pay), and perhaps also lower-paid workers being more impacted (composition effect leading to higher average pay)." So why call it "wages?"
"Wage growth: 4.0% annualized over the past 3 months (a little above where the Fed wants it)"
It is not the Fed's job to want wages to grow faster or slower or not at all.
BTW, Neither the Fed nor anyone else know how fast wages grew because BLS does not produce any wage indexes.
BLS produces unit value indexes, but these are affected by composition of wages within a category as the report itself points out:
"We also saw a January spike in wage growth, caused by a combination of two factors - salaried workers working fewer hours (= higher hourly pay), and perhaps also lower-paid workers being more impacted (composition effect leading to higher average pay)." So why call it "wages?"