Workers' paychecks grew faster in the first quarter, a possible concern for the Fed
Time:2024-05-21 22:21:06 Source:travelViews(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:I'm a cruise ship worker...these are the FIVE things smart passengers always do onboard
Next:This Week: Home sales, Fed meeting minutes and consumer sentiment index
You may also like
- Harris accepts debate invite to face off with Trump's VP pick, which may come at convention
- Yangtze River Delta put into focus
- Italy's 2006 World Cup
- New Hampshire getting $20M grant to help reconstruct coastal seawalls
- Cannes 2024: Studio Ghibli takes a bow with an honorary Palme d'Or
- The body of a kayaker has been recovered after he vanished last week in Indianapolis
- Venezuela's president meets with accuser in ongoing criminal probe into human rights abuse
- Missouri lawmakers again try to kick Planned Parenthood off Medicaid
- Kid Rock 'uses N