Good morning.
Labor costs and wages are certainly topics that concern CFOs. But the U.S. Federal Reserve may be reassessing the viewpoint that wage growth boosts core inflation. Meanwhile, new research points to labor costs having a small effect on overall inflation.
Following continual interest rate hikes over the past 15 months—the most aggressive monetary policy since the 1980s—inflation fell for the 11th straight month to just 4% in May, the Bureau of Labor Statistics reported on Tuesday. Economists expect Federal Reserve Chairman Jerome Powell to announce a pause in rate hikes during the Federal Open Market Committee (FOMC) meeting today.
