Wage Growth Exceeding Fed's Limit Could Fuel Inflation Volatility
- Investors may be underestimating sticky wage growth as a driver of persistent inflation
- Wage growth of 3.5% is seen as the limit for 2% inflation by the Fed
- December jobs report showed stronger than expected wage growth at 4.1%
- Fed remains concerned about a wage-price spiral embedding high inflation
- BlackRock analysts see inflation volatility ahead as persistence becomes clearer