Comments from the Michigan survey director

  • Keeps consumer spending view of 3%
  • Very few consumers are borrowing before hike
  • Fed needs to be careful not to hurt housing
  • Consumers still see 1.8% rise in incomes
  • Consumers still complaining about wages
  • They see wages as the main concern
  • Soft wages remain a sore point

The comments couldn't have come at a more apt time after the employment cost data

As market commentators start guessing and re-guessing their rate hike estimates, the question is whether the Fed will hold back from rate hikes on the current levels of wages?