U.S. labor productivity held steady at 2.2%, with lower wage growth suggesting the Fed may cut rates.

The U.S. Labor Department reported that labor productivity grew 2.2% in the third quarter, unchanged from the initial estimate. Unit labor costs were revised down to a 0.8% increase from 1.9%, reflecting a lower rise in hourly compensation. This suggests moderating wage growth and inflation pressures, likely leading the Federal Reserve to cut interest rates by 25 basis points at their next meeting.

3 months ago
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