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:
Maggie Rogers on 'Don't Forget Me,' the album she wrote for a Sunday driveProject to shore up Pompeii yields stunning black banquet hall, with frescoes of Trojan War figures'Civil War' review: A haunting portrait of a crumbling United StatesBig banks warn of uncertain year ahead after mixed financial performances in the first quarterOdysseus: Moon lander tipped over at touchdown, limiting the data it's sendingApril 8 solar eclipse: What you need to know before you watchJoel Embiid returns from injury scare, scores 32 as 76ers beat Magic 125Blind people can hear and feel April's total solar eclipse with new technology2025 Oscars: Academy Awards announces March 2 dateGoldman, Brown families could be first in line for OJ Simpson's assets
3.1814s , 6501.5078125 kb
Copyright © 2024 Powered by Workers' paychecks grew faster in the first quarter, a possible concern for the Fed ,Culture Channel news portal