If Friday’s non-farm payrolls report didn’t tell you that wages are critical, this highlights it. Even 2nd tier data on wages is in the spotlight now.
- Falling core inflation would undermine confidence
- Expects wage gains in next 6-9 months
- 10-year yields reflect global safe haven flows
- Full employment could be ‘closer to 5%’
Lockhart was answering reporter questions after his speech.