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But we saved everything 🙂.
Unit labor costs dropped by 0.7% in the third quarter after a 1.9% increase in the second quarter. Anna Wong said this data does not warrant continued interest rate hikes. She also referred to Frbus, which predicted tightening credit conditions from the portion of term premium increases in Federal Reserve models, and questioned why economic data and models that guided policy in the past are no longer being followed.
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In previous commentary, Anna Wong highlighted that more than 900 supply bottlenecks identified from the last quarter remain as financing conditions tighten, according to recent reporting. She has also discussed how U.S. fiscal sustainability may depend on reducing obesity to help decrease Medicare and Medicaid costs, as detailed in an earlier article. These observations build context around her latest views on labor costs and monetary policy.