Her statement highlights the delicate balance the Fed is trying to strike between controlling inflation and avoiding a potential economic downturn. Recently, Mary Daly, president of the Federal Reserve Bank of San Francisco, hinted that the Fed could halt its rate hikes if the job market continues to slow. Still, the remarkable job growth might lead to concerns that the economy is expanding too rapidly for inflation to cool down. Some experts believe that the slowing wage growth may actually be a relief to the Fed’s inflation fighters, who are closely monitoring economic data to determine their next move. Could this cooling of pay growth impact the Fed’s decisions on interest rates? While wages are up 4.2% compared to a year earlier, this marks the mildest 12-month increase in over two years. Average hourly pay only rose by 0.2% from August to September. However, there is a slight cause for concern as wage growth has slowed down. Government employment at all levels has also increased, reflecting the healthy budgets of state and local governments. Government Employment and Slowing Wage Growth: Impact on Fed’s Interest Rate Decisions
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |