What Rising Wages: Fed Itself Just Admitted “Household Income Expectations Are Falling Sharply”
by Tyler Durden
ZeroHedge.com
11/09/2015
Having noted the plunge in consumer spending expectations to record lows last month, The Fed faces an even bigger problem this month. Despite the apparent wage growth in Friday’s magical BLS data, The New York Fed admits “public expectations of future income took a big hit,” as the index suffered its biggest one-month decline on record. But the news gets even worse, as 3-year-ahead inflation expectations plunged to record lows (confirming the record low inflation expectations from UMich’s) and entirely discounting Stan Fischer’s inflation excuses last week. Fianlly, as stocks have stagnated this year as wealth creator for The Fed, consumer expectations of housing price gains have tumbled to series lows. It appears a desperate-to-hike-rates fed is cornered by, as UMIch previously noted, “a disinflationary mindset is taking hold.”
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