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Labor Market Will Play a Role in Economic Outlook but Rising Wages Could Lead to More Inflation

Strong consumer spending over the past year has been boosted by government stimulus programs but will rely more on the labor market and job creation as the benefits of those efforts subside, National Retail Federation Chief Economist Jack Kleinhenz said today. Meanwhile, higher wages that employers have had to pay as they struggle to fill job openings could lead to more inflation in coming months.

“Consumer spending is currently far above pre-pandemic levels thanks to unprecedented monetary and fiscal policies that have backstopped demand by putting money into...

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