CNBC's Pisani: Jobs Data Show Inflation Isn't a Worry

Friday, 01 Aug 2014 12:05 PM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
While some Federal Reserve policymakers have voiced concern about inflation, CNBC commentator Bob Pisani says Friday's jobs data show it's not a problem.

July's payroll gain totaled 209,000, below economists' consensus forecast of a 230,000 increase. Hours worked were unchanged.

And on the compensation front, wages only rose 2 percent in the 12 months through July. The gain for the 12 months through June was revised down to 1.9 percent from 2 percent.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!


"The bottom line is there are no wage pressures. That should mute, at least temporarily, any upward pressure on yields," Pisani wrote in a column for CNBC.

Meanwhile, another report showed that the personal consumption expenditures price index, the Fed's favored inflation gauge, climbed only 1.6 percent in the 12 months through June, 1.5 percent excluding food and energy.

That's "another inflation indicator that has yet to show signs of blowing up," he noted.

"Don't get me wrong: I'm not happy about the muted wage growth. I would be perfectly happy to trade higher wages for a flat to modestly down stock market. I view putting more coin in the average man's pocket as more important than keeping the S&P 500 at a record high, which looks fairly rich north of 1,900."

The Fed has an inflation target of 2 percent.

To be sure, inflation has risen from the start of the year, when it was running at a rate of about 1 percent. "Inflation is still very tame, but it has started edging up," Jim O'Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, N.Y., told The Wall Street Journal.

Dallas Fed President Richard Fisher appears concerned about inflation. He told CNBC http://www.cnbc.com/id/101886667
that the Fed might have to raise interest rates early next year, thanks to the economy's strength.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Fox News, Fox Business Removed From Dish Network in Fee Dispute

Sunday, 21 Dec 2014 18:43 PM

Fox News Channel and Fox Business Network are not currently available on satellite-broadcaster Dish Network, the result  . . .

Santa Comes Early at Pump as Gasoline Falls to Lowest Since 2009

Sunday, 21 Dec 2014 18:03 PM

The average price of regular gasoline at U.S. pumps slid to the lowest level since May 15, 2009, dropping 24.68 cents in . . .

Saudi Oil Chief: No Conspiracy Behind Plunging Oil Prices

Sunday, 21 Dec 2014 09:33 AM

Saudi Arabia's oil chief on Sunday dismissed allegations that his kingdom conspired to bring down oil prices in order to . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved