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
Verona confirms Serie A status for another year after beating Salernitana
SALERNO, Italy (AP) — Verona secured a place in next year’s Serie A after beating Salernitana 2-1 on2024-05-21Literacy, numeracy tests as NCEA requirement 'detrimental' to learners
File pic Photo: 123RF2024-05-21Victorian miner killed in Ballarat Gold Mine rockfall as investigation continues
Photo: Supplied / Google Maps2024-05-21NZ missing out, lawyers say as visas for wealthy investors plummet
Thirty-one visa applications from foreign millionaires are under consideration, mostly from North Am2024-05-21Inquiry slams UK authorities for failures that killed thousands in infected blood scandal
LONDON (AP) — British authorities and the country’s public health service knowingly exposed tens of2024-05-21Victorian miner killed in Ballarat Gold Mine rockfall as investigation continues
Photo: Supplied / Google Maps2024-05-21
atest comment