Inflation expectations, wages & jobs: why they matter so much to markets

In this follow-up to our episode on inflation, we zoom in on one of the most underrated yet powerful forces shaping monetary policy and market moves: inflation expectations. What do people think prices will do in the future? Those expectations can actually fuel real inflation through wage demands, spending behavior, and corporate pricing decisions. In this episode, we connect the dots between expectations, wage growth, and employment data—and explain how investors interpret all of it. From the Phillips Curve to the iconic US NFP Friday, we explore how jobs and wage data affect rate expectations, market sentiment, and asset prices. Why does “bad news” sometimes become “good news” for equities? Why do central banks fear a wage-inflation spiral? And how have post-pandemic inflation spikes changed the game for investors? Listen to find out more!