The week in financial markets: Why aren’t wages growing faster in this booming economy?

The Fed's inflation forecasts (implicitly wages also) have failed ever since the recovery began in 2010

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Jeepers. What a week, and where to begin? At the end, is where. Long-term rates have ended this week poised for the next step up, markets and Fed-speakers whistling past the graveyard. Between beginning and end... since the 2016 election, markets have mostly ignored goings-on at the White House. Yes, the stock market tended to general exuberance with a business-friendly administration, but the bond market has behaved like your mother trying not to notice what your brother is up to. You figure his spanking is coming any minute, but your brother escapes again and again. Until now. The tariffs clobbered stocks and put a lid on rates. Gary Cohn’s resignation did the same. Today stocks have returned to exuberance on the prospect of peaceful resolution with North Korea, and the report of a wild surge in jobs. If the president de-nuclearizes Chubby, all of the president’s sins are forgiven, even if it’s Emperor Xi’s work. Fingers crossed for a genuine stress-reliever. Empl...