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
Queen Camilla reveals she's seen the first season of Bridgerton
Queen Camilla has revealed she has seen the first season of Netflix hit Bridgerton. The royal, 76, t2024-05-21Asylum seeker who killed British retiree says he was seeking revenge for the people of Gaza
LONDON (AP) — An asylum seeker from Morocco who went on a vicious rampage following the Oct. 7 Hamas2024-05-21Kentucky coach Mark Pope adds Baylor assistant Alvin Brooks III as associate head coach
LEXINGTON, Ky. (AP) — Kentucky has hired Baylor assistant Alvin Brooks III as associate head coach,2024-05-21Ukrainian duo heads to the Eurovision Song Contest with a message: We're still here
KYIV, Ukraine (AP) — Even amid war, Ukraine finds time for the glittery, pop-filled Eurovision Song2024-05-21Elon Musk gets approval from FDA to implant his Neuralink brain chip into a second patient
Elon Musk’s Neuralink has been given a green light to implant its brain chip in a second patient aft2024-05-21Google parent reports another quarter of robust growth, rolls out first
Google’s corporate parent Alphabet Inc. on Thursday released a quarterly report showing it’s still r2024-05-21
atest comment