Third, I will be watching for any signs that wage gains are feeding into higher inflation more broadly, but the evidence so far suggests that wage gains are broadly in line with productivity growth, and the labor share of income remains low relative to historical levels.
To date, high markups and nonwage input costs appear to be more notable contributors to inflation than wage pressures. Finally, I am vigilant for any signs that the current high level of inflation might push longer-term inflation expectations above levels consistent with our 2 percent inflation objective. Market-based measures of inflation compensation suggest inflation expectations remain well anchored.