Wage growth could spur inflation, says Capital Link’s McGonegal
A tight labor force could lead to a scramble in the job market if an immigration bill is enacted
Capital Link International Chairman and CEO Brett McGonegal discusses wage growth and Fed policy on Bloomberg’s Daybreak: Asia.
“Wage growth is what we’re really after right now,” McGonegal says. “This is unproductive growth if you can call it that because we are not seeing anything re-invested. We’re not seeing investment. We’re not seeing wage growth that’s being put back into the economy.
“The fear is that with a tight labor force, the tightest it’s been in 16 years, what happens now if an immigration bill were to come in and you can’t hire foreign employees and skilled labor. You could be repricing the same jobs up higher just to scramble to grab people then you have bad inflation coming in.”
McGonegal is also a principal investor in Asia Times.