Workers' paychecks grew faster in the first quarter, a possible concern for the Fed
Time:2024-05-21 22:08:05 Source:worldViews(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:Wildfires sweep across Finland, straining rescue services
Next:Insider Q&A: CIA's chief technologist's cautious embrace of generative AI
You may also like
- Kevin Pillar gets 1,000th career hit in Angels' win at Texas
- Sensitive NZ Police video evidence shuffled around US tech companies
- Tāngarākau campground murder: Justice Williamson
- Greek vessel hit by missile in Red Sea attack
- Nigella Lawson, 64, reveals she would 'never take Ozempic' as a weight
- Foreign Affairs Minister Winston Peters praises US engagement in the Pacific
- Could the genocide case against Israel at the UN's top court have an impact on the war in Gaza?
- Te reo Māori: Govt seeks to halt extra pay for public servants fluent in the language
- Jodie Turner