Workers' paychecks grew faster in the first quarter, a possible concern for the Fed
WASHINGTON (AP) — Pay and benefits for America’s workers grew more quickly in the first three months of this year, a trend that could contribute to higher inflation and raise concerns about the future path of price increases at the Federal Reserve.
Compensation as measured by the government’s Employment Cost Index rose 1.2% in the January-March quarter, up from a 0.9% increase in the previous quarter, the Labor Department said Tuesday. Compared with the same quarter a year earlier, compensation growth was 4.2%, the same as the previous quarter.
The increase in wages and benefits is good for employees, to be sure, but could add to concerns at the Fed that inflation may remain too high in the coming months. The Fed is expected to keep its key short-term rate unchanged after its latest policy meeting concludes Wednesday.
Fed Chair Jerome Powell and other officials have recently backed away from signaling that the Fed will necessarily cut rates this year, after several months of higher-than-expected inflation readings. Big price increases for rents, car insurance and health care have kept inflation stubbornly above the Fed’s 2% inflation target.
Related articles
Trump or Biden? Either way, US seems poised to preserve heavy tariffs on imports
WASHINGTON (AP) — As president, Donald Trump imposed a 25% tariff on foreign steel, which hurt Clips2024-05-21North Carolina high school student, 16, is suspended for saying 'illegal alien' in class
A North Carolina high school student has been suspended for using the phrase 'illegal alien' in clas2024-05-21Prominent Baptist pastor in military
BANGKOK (AP) — A prominent Christian church leader and human rights advocate from Myanmar’s Kachin e2024-05-21Doctors warn about the one skincare mistake that's ageing thousands of women under 30
Women under 30 are using strong anti-ageing skincare products far too early - and it's making them l2024-05-21Yu Darvish extends scoreless innings streak to 25 in Padres' 9
ATLANTA (AP) — Yu Darvish dominated a slumping Braves offense and extended his career-high scoreless2024-05-21Daniele De Rossi's contract at Roma is extended just 3 months after replacing Jose Mourinho
ROME (AP) — Daniele De Rossi’s contract at Roma has been extended after just three months on the job2024-05-21
atest comment