Strong labor market, high inflation, a ‘two economies story’, says Steve Moore


Bestinau got that-



During an interview on “Mornings with Maria,” economist Steve Moore said there is a “two economies story” in light of the March jobs report as the job market remains strong and inflation remains incredibly high.

WE SEE A GLIMER OF HOPE IN JOB GROWTH DESPITE STUNNING INFLATION

Red sign on the glass door of a shop that reads: “Rent now.” (iStock)

STEVE MORE: This is a very positive report, hands down, we have the strongest job market we’ve seen, probably in our lifetime when you have these 11 million unfilled jobs. If you add up the revisions, half a million job creation is a very, very large number. But I really see this as a weird kind of story about two economies. You have an incredibly strong job market and an incredibly high inflation. And here’s the future problem I’m concerned about – something needs to be done here. You know, you can’t continue with 8% inflation and 5.5% wage growth. That doesn’t work, does it? Because that means that employees are left behind. And the problem is, when those wages start catching up with inflation, you get a kind of wage-price spiral that can be so damaging. We need to bring this inflation down to maintain a healthy economy. I spoke to a CEO in Silicon Valley a few days ago and said that getting a qualified engineer in Silicon Valley now pays $500,000 — for an engineer — those are incredibly high salaries. So there is a shortage of talent. But the key for the Biden administration and the Fed is to curb this inflation as quickly as possible.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

VIEW THE FULL MARCH JOB REPORT HERE:

Leave a Comment