Economy: Weak job growth but rising wages
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The jobs report could create a problem for the Federal Reserve, said Justin Lahart in The Wall Street Journal. Thanks to an aging population, the economy only needs to add about 50,000 jobs per month for unemployment to stay at its current 3.8 percent. So even though the economy appears to be slowing, the tight labor market could send wages and prices up. This puts the Fed in a tricky spot. The Fed has dialed back its interest-rate hikes to keep the economy moving. That’s easy as long as “inflation is quiescent.” But it may be hard to stick to that plan if “inflationary pressures build.” ■