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
Australia, New Zealand send planes to evacuate nationals from New Caledonia
NEWCASTLE, Australia (AP) — Australia and New Zealand sent airplanes to New Caledonia on Tuesday to2024-05-21Seinfeld's upcoming Netflix movie about Pop
Jerry Seinfeld’s upcoming Netflix comedy will be featured during this weekend’s IndyCar race at Long2024-05-21Maui Fire Department report details how it was no match for unprecedented blazes
HONOLULU (AP) — When wildfires broke out across Maui last August, some firefighters carried victims2024-05-21Greek minister says 2 major new marine parks will be created by the end of this year
ATHENS, Greece (AP) — Greece will be able to create the two new major marine parks it has announced2024-05-21Pentagon vows to keep weapons moving to Ukraine as Kyiv faces a renewed assault by Russia
WASHINGTON (AP) — Defense Secretary Lloyd Austin committed Monday to keeping U.S. weapons moving to2024-05-21Man arrested after 3 shot to death in central Indiana apartment complex
INDIANAPOLIS (AP) — A 24-year-old Indianapolis man was arrested Tuesday in connection with the fatal2024-05-21
atest comment