The oil crash is starting to break down global bond markets. The short end is holding up on hope like that expressed by Jon Hilsenrath:
Federal Reserve officials have fuzzy views on how wage growth fits in with their objectives for the economy. They would like to see wages growing faster. It would give them confidence that the economy is closer to their dual goals of producing healthy job growth and modestly rising inflation. But the linkages between wages, jobs and inflation are unclear, and so they’re not banking on faster wage growth materializing.
…This plays in complicated ways into the Fed’s thinking on interest rates. Fed officials expect to raise short-term interest rates this year. Will they proceed in an environment in which wage growth is not materializing?
