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
French Olympic fencer Thibus says she has been cleared of any wrongdoing after abnormal doping test
PARIS (AP) — Ysaora Thibus, one of France’s leading fencers, says she will be able to compete at the2024-05-22How hard is it to land an airliner in a crosswind
It's 209ft (63m) long and weighs about 180 tonnes - yet I can feel this giant aircraft being pushed2024-05-22Coronavirus China: Wuhan lab staff 'had virus symptoms before first confirmed cases'
Your web browser is no longer supported. To improve your experience update it here2024-05-22Chile forest fires death toll jumps to 46, likely to keep rising
By Diego Ore for ReutersAerial view of burned houses in Quilpe, Chile after a forest fire. Photo: RO2024-05-22- ANN ARBOR, Mich. (AP) — Police broke up a pro-Palestinian encampment Tuesday at the University of Mi2024-05-22
Sagging bridge ‘warning shot’ work needed
By Tim Scott of2024-05-22
atest comment