US Q4 worker paycheck growth slowed to 0.9% from 1.1% Q3, signaling potential cooling trend and possibly influencing Fed's interest rate decision.

US worker paycheck growth slowed in the final quarter of last year, indicating a possible cooling trend within the strong job market. The increase in wages and benefits as measured by the government's Employment Cost Index rose by 0.9% in the October-December period, a decrease from the previous quarter's 1.1% increase. Compared to the same period a year prior, compensation growth slowed to 4.2% from 4.3%. This slowdown could ultimately affect the Federal Reserve's decision regarding when to begin reducing interest rates.

January 31, 2024
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