Fed's Yellen: Seeing Slightly Faster Wage Growth in U.S.

The video discusses recent trends in wage growth, highlighting a slight increase in average hourly earnings over the past year. It examines various wage indicators, such as the Atlanta Fed Wage Tracker, and considers the impact of labor market improvements. However, it notes that slow productivity growth is a negative factor affecting wage growth. The video concludes by discussing sustainable wage growth in relation to a 2% inflation target, suggesting that wages can grow at the rate of productivity growth plus inflation.

What is the expected relationship between wage growth and productivity growth?

What is the inflation target mentioned in the text, and how does it relate to wage growth?