If wages have finally started a sustained rise, imagine what will happen to the economy when businesses and consumers start spending their tax cut windfalls. And imagine how the Federal Reserve will respond.
The Labor Department on Friday reported that the economy added 200,000 jobs in January and that the unemployment rate stayed steady at a low 4.1%. But the big news was wages. Average hourly earnings rose 0.3% from a month earlier—more than economists expected—and the December figures were revised higher. That put them…
