I somehow drag myself out of bed the Tuesday after labor day to discuss why the surge in blue-collar employment isn't tied to significant wage inflation - which is great for inflation and earnings.
My take? Economic growth is being driven by productivity from the massive AI buildout. Come on, have you used an LLM recently? What is scary is how good these models are becoming at reasoning.
While we may get a hike to show credibility, without major wage inflation it seems less likely we are looking at a larger hiking cycle. Time will tell.