JPM's Kasman Sees Potential for 4% Nominal U.S. Wage Growth

The video discusses wage growth, focusing on the Employment Cost Index, which includes wages and benefits adjusted for inflation. It highlights the potential for wage growth if economic expansion continues and labor markets remain tight. The discussion also covers the shift in bargaining power towards workers, challenges posed by global risks, and the impact of demographic changes like baby boomers leaving the workforce. The importance of incentivizing discouraged workers to rejoin the workforce is emphasized, along with the role of the Fed in encouraging these trends.

What challenges are identified regarding the bargaining power of workers?

What does the speaker suggest is necessary to encourage discouraged workers to return to the labor force?