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U.S. Economy’s Promises, and Perils, of 2015

Wall Street Journal (01/04/15) Nick Timiraos

Economists agree that the U.S. economy is among the best off as the new year begins, and some believe the upcoming December employment report from the U.S. Department of Labor will show that 2014 was the best year for job growth in 15 years. However, there are big questions about wage growth, given that a survey by the U.S. Federal Reserve shows that only the wealthiest 10% of households saw median incomes increase between 2010 and 2013.

Some economists forecast that labor costs will increase as the unemployment rate drops to its natural level, between 5.2% and 5.5%, while others expect the unemployment rate to decline even more before meaningful increases in wages are seen.