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
South African boxer Dingaan Thobela, 'The Rose of Soweto,' dies aged 57
JOHANNESBURG (AP) — South African boxer Dingaan Thobela, a two-weight world champion known as “The R2024-05-01Xi Sends Congratulations to Micronesia's New President
Contact Us HomeNewsHighlightACWF NewsSocietyWom2024-05-01- Contact Us HomeNewsHighlightACWF NewsSocietyWom2024-05-01
Peng Liyuan, African First Ladies Launch Health Campaign for Orphans in Africa
Contact Us HomeNewsHighlightACWF NewsSocietyWom2024-05-01EDEN CONFIDENTIAL: Prince Harry's army friend JJ Chalmers urges Kate to talk about cancer
As the Duke of Sussex prepares to return to Britain to attend the tenth anniversary celebrations of2024-05-01China, DRC Upgrade Ties to Comprehensive Strategic Cooperative Partnership
Contact Us HomeNewsHighlightACWF NewsSocietyWom2024-05-01
atest comment