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
Messi in and Dybala out in Argentina squad for pre
BUENOS AIRES, Argentina (AP) — Lionel Messi is in and Paulo Dybala is out of Argentina’s squad for f2024-05-21Man arrested after authorities say he threw pipe bomb at Satanic Temple
BOSTON (AP) — An Oklahoma man was arrested Wednesday after authorities accused him of throwing a pip2024-05-21Skeletal remains found at home in Illinois identified as those of woman missing since 2008
SPRINGFIELD, Ill. (AP) — Skeletal remains found at a house in Springfield have been identified as th2024-05-21Charges dropped against suspect in 2016 cold case slaying of Tulane graduate
NEW ORLEANS (AP) — Authorities have dropped charges against a suspect in the 2016 cold case slaying2024-05-21Cruise worker 'murders newborn son on board ship': Shocked co
A cruise worker on board an Italian ship 'murdered her newborn son' as horrified co-workers raised t2024-05-21Voter ID took hold in the North Carolina primary. But challenges remain for the fall election
RALEIGH, N.C. (AP) — Nearly everyone who voted in person in last month’s North Carolina’s primary sh2024-05-21
atest comment