SocGen's Edwards: Fed will be forced into 'more pronounced' tightening than market expects

Rising wages and inflation

Société Générale's bearish analyst Albert Edwards has said Janet Yellen could be prompted to increase rates at a more "pronounced" pace than the market expects this year, driven by rising wage inflation.

Permabear Edwards (pictured) said chairman Yellen "at long last" had the "tightening bit between her teeth" in light of rising wage inflation and strong employment figures. Speaking in San Francisco last month, Yellen said: "The unemployment rate is less than 5%, roughly back to where it was before the recession. And, over the past seven years, the economy has added about 15.5 million net new jobs.  "Although inflation has been running below our 2% objective for quite some time, we have seen it start inching back toward 2% last year as the job market continued to improve and as the ef...