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Matthew Klein highlights that the U.S. job market continues to have inflationary pressures, with wage growth now accelerating slightly.
He points to a rise in 'supercore' service price increases and raises questions about the recent slowdown in health care wage growth.
Earlier this year, Klein agreed with former Fed official Kevin Warsh that excess inflation is not mainly caused by tariffs, stating that inflation may remain persistent beyond direct trade impacts in a previous report. He has also reviewed the historical factors driving Saudi investments in U.S. assets, noting the influence of Western nations on these flows. Klein’s recent observations build on his ongoing coverage of inflation risks and international financial trends.