Let’s update you on the pressures of the US economy – While it was looking like it might all just work out, landing with that dream scenario of inflation falling with a strong job market, it seems prices are staying high. New data out Friday morning showed consumer spending and inflation heated up in January. And, The core personal consumption expenditures price index, which excludes food and energy costs, rose 0.6% last month — the fastest since last June.
Also out is a paper by economists who suggest that a mild recession will be necessary for inflation to come down to the Fed’s 2% target.
I also wanted to note some wage data changes — Silicon Valley and the Bay Area suffered sharp drops in average wages as the tech sector shed jobs. A recent Dice salary report shows that Tech worker salaries increased by 2.3% last year. While that increase kept average salaries well above six figures, it slowed down from 2021’s 6.9% growth rate.
Why do we care?
Updating on the state of play. It’s looking much more positive than it did six months ago.