Strong job market, high inflation rate a ‘tale of two economies,' Steve Moore says
Wages catching up with the inflation rate could be ''very damaging,' says economist Steve Moore
Economist Steve Moore weighs in on the March jobs report.
During an interview on "Mornings with Maria" economist Steve Moore said in light of the March jobs report there is a "tale of two economies," as the job market continues to be strong and the inflation rate remains incredibly high.
US SEES GLIMMER OF HOPE IN JOB GROWTH DESPITE CRIPPLING INFLATION
Red sign hanging at the glass door of a shop saying: "Now hiring." (iStock)
STEVE MOORE: This is a very positive report, no question about it, we have the strongest jobs market we've seen, probably in our lifetime when you've got these 11 million unfilled jobs. When you add the revisions, a half a million job creation is a very, very strong number. But I really see this as a kind of a weird kind of tale of two economies. You've got an incredibly strong job market and an incredibly high inflation rate. And here's the problem going forward that I worry about-- something's got to give here. You know, you can't continue to have inflation at 8% and wages growing at 5.5%. That doesn't work, right? Because that means that workers continue to fall behind. And the problem is, if those wages start to catch up with the inflation rate, then you get this kind of wage-price spiral that can be, you know, so damaging. We've got to bring this inflation rate down to maintain a healthy economy. I talked to a CEO in Silicon Valley a couple of days ago, saying to get a qualified engineer in Silicon Valley now wages $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 bring this inflation down as rapidly as possible.
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FOX Business' Cheryl Casone reports on the March employment report moments after its release.