UBP's McFarland Says Fed to Hike Twice in 2018

The video discusses the addition of 228,000 jobs in November, surpassing expectations, but notes that wage growth remains low. Mark McFarland, JBP Asia's chief economist, explains that global factors are affecting US wage growth, which is expected to stay between 2% and 2.5%. Despite calls for inflation and wage increases, structural issues persist. The US economy needs rapid growth to drive inflation, but growth is projected at 2.2%. Tax reforms may not significantly impact growth, though they could affect corporate profits. The Fed is expected to implement two rate hikes in 2018, with a third or fourth depending on inflation trends.

What factors are contributing to the downward push on US wage growth?

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What is the outlook for inflation according to the text?

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