A ferocious sell-off on Wall Street on Friday - with stocks tumbling and bond yields rising after the January U. S. jobs report suggested higher inflation ahead - served as a blunt reminder of the challenges Powell's Fed will face. Yellen was able to oversee a gradual rate policy because inflation posed no threat: It ran below even the Fed's 2 percent annual target throughout her tenure. Friday's jobs report showing wages rising 2. 9 percent over the past 12 months - the biggest such jump since the recession ended in 2009 - suggested that the Fed may be entering an era of higher inflation and a need for higher rates.
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