Skanda Amarnath: Supply shocks threaten real income gains

Skanda Amarnath: Supply shocks threaten real income gains
Supply shocks may impact real incomes

Skanda Amarnath, industry influencer, observes that recent data on nominal labor income growth is somewhat backward looking but had indicated a soft landing with stabilization at a healthy pace.

However, Amarnath adds that self-inflicted supply shocks are causing inflation to rise again, which could put renewed pressure on real incomes.

Amarnath previously noted that core PCE inflation remains over 1 percent above target, while interest rates are only slightly above neutral. Industry watchers have also drawn attention to methodological issues in market-based nonhousing data components. These issues include lags that can affect the reliability of economic data.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.