The December jobs report showcased that wage growth has moderated, signaling that the Federal Reserve’s interest rate hikes are having their intended effect. The stock market rallied, and investors rejoiced in hopes that inflation may be cooling.
However, economists expect this data would not deter the Fed from hiking rates when it meets in February. Mike Loewengart, head of model portfolio construction for Morgan Stanley’s Global Investment Office, said, “I don’t think this is going to sway the Fed from a few additional raises going forward, but it no doubt is encouraging to see a moderation in wages.”
