Workers' paychecks grew faster in the first quarter, a possible concern for the Fed
Time:2024-05-22 11:00:40 Source:businessViews(143)
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.
Previous:Tennessee latest state to mandate automatic defibrillators at high schools
Next:EU seals a deal on using profits from frozen Russian assets to help arm Ukraine
You may also like
- French Olympic fencer Thibus says she has been cleared of any wrongdoing after abnormal doping test
- World's biggest bridges revealed after collapse of colossal Baltimore landmark
- I'm a first
- 'Sorry, you can't board, off you pop': Traveller reveals how he was caught out by a post
- Ecuador: Fire department honors five rescue dogs during retirement
- Come fry with me! The UK's cheapest and priciest airports for a full English breakfast revealed
- How Impax Environmental Markets invests for profit and to improve the planet: INVESTING SHOW
- How to grab a last
- Rafael Devers sets team record by homering in 6th straight game as Red Sox top Rays 5