In a key development for the Federal Reserve's interest rate decisions, U.S. labor costs growth have shown a marked slowdown. The latest data reveals that wages and salaries rose by just 0.9% in Q2 2024, down from a 1.1% increase in the previous quarter. Historically, the Employment Cost Index for wages has averaged 0.80% since 1982, with a peak of 1.60% in Q3 1982 and a low of 0.20% in Q2 2015. This recent slowdown adds to the growing pressure on Fed Chair Jerome Powell to consider lowering interest rates.
Perhaps this is happening because of election in us
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Is that quarterly wage growth or annual wage growth reported quarterly?
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It's QoQ for Q2
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That's a fairly high rate of wage growth then, right? I know it's lagging inflation, but it seems like you wouldn't cut rates unless that number fell below 0.5% or so.
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but the path is clearly pointing in a negative direction. but I also believe that the Fed will not cut rates, but for other reasons. (ECB)
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Wages are not increasing like they should be. Inflation is eating away at everyones earnings and savings.
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