1003 ET - When inflation runs hotter and the job market is tight--meaning there are more jobs than available workers--employees usually want higher wages to compensate for high living costs. It's one of the reasons the Fed makes sure inflation expectations remain well anchored. In Friday's jobs report, average hourly earnings rose 0.3% month-over-month, while year-over-year earnings growth slowed to 3.1% from 3.2%. "The Fed can be reassured that the labor market is not a source of inflationary pressure," says a note from Oxford Economics.