D.R. on Varney & Co.: Why to Watch Out for Wage Inflation

Company earnings reports have been strong this year – and with strong growth, companies are faced with decisions on how to spend their extra revenue. They have a variety of options: They could invest the money in new plants and technology, they could buy back shares, or they could increase wages. Of these options, investing in new plants and technology is particularly favorable for the market. Conversely, money put towards wages could lead to troublesome intervention from the Fed. With fourth quarter earnings on the horizon, D.R. shares his perspective on what we can expect..

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