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
Germany's foreign minister visits Kyiv as Ukraine battles to hold off a Russian offensive
KYIV, Ukraine (AP) — Germany’s foreign minister arrived in Kyiv on Tuesday in the latest public disp2024-05-22iQIYI signs strategic partnership with Tourism Authority of Thailand
iQIYI signed a strategic partnership letter of intent with the Tourism Authority of Thailand in Beij2024-05-22China strives to secure water supply in drought
The Ministry of Water Resources said on Sunday it had concerted efforts to secure water supply in ar2024-05-22China's ecological environment improves steadily in Q1
China saw its air and water quality steadily improve in the first quarter of the year amid the count2024-05-22Mohammad Mokhber: Who is Iran’s acting president?
DUBAI, United Arab Emirates (AP) — Iran’s first Vice President Mohammad Mokhber was appointed as act2024-05-22Deforestation in Indonesia spiked last year, but resources analyst sees better overall trend
JAKARTA, Indonesia (AP) — From trees felled in protected national parks to massive swaths of jungle2024-05-22
atest comment