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U.S. wage growth has been slowly accelerating over the past several months, and may get an additional boost from recent tax reform. But considering current levels and the trajectory it could still take a few more years to reach 4% — a level where corporate margins often face increased pressure, signaling a mature business cycle. The past three economic expansions have lasted at least one additional year after reaching that threshold, so the current cycle could still have more room to run.
Past results are not predictive of results in future periods.
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