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:
Related suggestion:
Podcast pick: The best audio show to listen to nowThe hotel room on WHEELS! SelfJessi Campbell: Little girl's brave battle after being born with 1kg cyst on her armHong Kong's leading bookstores decline to stock new book by last governor Chris PattenThe black market dealers delivering Elon Musk's Starlink to US adversariesNHS waiting lists fall for fifth month in a row as Rishi Sunak says 'our plan is working'The Elle Woods effect: Good looking lawyers have more success in court, study findsThe Elle Woods effect: Good looking lawyers have more success in court, study findsJapanese astronaut to be first nonEnjoy last night's solar eclipse? How to tell if it could have PERMANENTLY damaged your eyes
2.8888s , 6499.265625 kb
Copyright © 2024 Powered by Workers' paychecks grew faster in the first quarter, a possible concern for the Fed ,Global Glossary news portal