Douglas Holtz-Eakin: Moderation in wage growth is ‘good news story’ for the Fed

Job gains reflected in the final jobs report ahead of the State of the Union blew past predictions with 517,000 jobs added, nearly tripling expectations. CNBC Senior Economics Reporter Steve Liesman and Douglas Holtz-Eakin, former Chief Economist of the President’s Council of Economic Advisors, join Andrea Mitchell to break down the numbers. “The most important characteristic is that we got very strong jobs growth in both reports, and we didn't see a big acceleration in wages. Wage growth continued to moderate somewhat,” says Holtz-Eakin. “Chairman Powell has linked wages to inflation in the service sector, which is our problem right now. And so that's a good news story from the Fed’s point of view. Strong growth, not strong inflation pressures. The proof will be in the pudding.”