Wage Growth Is What Matters Most About Rate Hikes

Don’t get too excited about interest rate rises in 2017, says CLSA’s Christopher Wood. Yes, Donald Trump’s fiscal stimulus could be a wild card that generates inflation, which, in turn, could lead to inflation and the three rate increases the Fed and even CLSA’s head of economic research Eric Fishwick is forecasting. But Wood, looking at recent employment numbers as just one example, is going to be “extremely surprised” if the Fed is as aggressive as is generally anticipated. But if  Interest Rate Hikes, it will be due to wage growth.

CLSA: Yellen  Interest Rate Hikes prove a point to Trump