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
Celebrity tequila brands, like George Clooney
Most popular tequila brands, including celebrity labels like Casamigos and Kendall Jenner's 818, inc2024-05-21New strategy to attack aggressive brain cancer shows promise
WASHINGTON (AP) — A new strategy to fight an extremely aggressive type of brain tumor showed promise2024-05-21Punxsutawney Phil and wife Phyllis are parents of 2 babies
Now we know what Punxsutawney Phil, the groundhog who predicts whether an early spring will arrive e2024-05-21Swedish appeals court rules space rock should stay with the owner of the property where it landed
STOCKHOLM (AP) — A Swedish land owner won a legal battle Thursday to keep a 14-kilogram (31-pound) m2024-05-21Macron is making a surprise trip to New Caledonia amid deadly unrest and indigenous frustration
PARIS (AP) — French President Emmanuel Macron is making a surprise trip to riot-hit New Caledonia, t2024-05-21Shoplifter chased by police on horses in New Mexico, video shows
ALBUQUERQUE, N.M. (AP) — Police in New Mexico had all the horsepower in this chase: A shoplifter was2024-05-21
atest comment