The wage story is gathering momentum. No wonder the Fed is concerned.

Preparing the markets for a rate hike is a process in which the Fed gradually has to back away from its unduly pessimistic stance of recent months. This will take some time, but the process is now underway.

This is great news. These are very helpful numbers to those -- including us -- who think the Fed will not raise rates next month.

This does not read like a Fed where everyone is looking for a reason to stop.

It now seems appropriate to start thinking about a fed funds rate as low as 4 percent by the summer.