Thomas Trutschel | Photothek | Getty Images
Now might be a good time for the Federal Reserve to start worrying about inflation.
August’s jobs report, besides being a big disappointment on the 235,000 headline number, also showed that wages are rising even with weak hiring.
Average hourly earnings jumped 0.6% for the month, about double what Wall Street had been expecting, and the increase from a year ago stood at a robust 4.3%, up from a 4% rise a month ago. Even leisure and hospitality, which saw zero net job growth in August, saw wages jump 1.3% for the month and 10.3% on the year.
Those numbers come as the Fed is weighing when to start pulling back on the historically easy monetary policy…