More People Have Jobs But Wages Are Stagnant, Says Moody's Lonski

Moody's Analytics Chief Market Economist John Lonski says employment numbers show more people finding work, but pay mostly stagnant. Household wages are declining in real terms. That makes things easier for the Federal Reserve, since it doesn't need to worry about fighting inflation. However, Fed Chair Janey Yellen has become more concerned about the quality of jobs--a real departure from her predecessors at the Fed. Lonski says U.S. workers are going to need to become accustomed to low wages given ongoing competition from emerging markets economies. Indeed, recent weakness in those markets suggests workers will be willing to accept even lower wages, putting even more downward pressure on U.S. workers' wages, Lonski says.