Job Growth Was On Target in March but Little Growth in Wages

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The latest report on job growth met economist's forecast but wages hardly grew at all. In fact, wages grew more slowly than they did at the peak of the recession. This means that inflation is not a threat. We can't have inflation without growth in wages which are the largest cost of production. Moreover, low wage growth means that business cannot raise prices and still have consumers with the purchasing power to buy their products.

With almost no growth in wages the Fed will not have to worry about inflation and it will continue to keep interest rates low. The bad news is that we are a long way from an economic recovery and full employment.