Friday, August 7, 2015

Why A Fed Rate Hike Will Almost Certainly Lead To A Recession

http://www.zerohedge.com/news/2015-08-07/why-fed-rate-hike-will-almost-certainly-lead-recession

The chart below shows why a Fed rate hike hike in the coming months virtually assures a recession: in July, wages for non-supervisory workers failed to rise once again, increasing by a paltry 1.8% Y/Y after peaking at 2.0% in late 2014. Worse, the current trend suggest the record lows of 1.3% will be revisited in the coming months.

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