United States Employment Cost Indext.co/ctIxwn2OIh pic.twitter.com/pqibeiF878
— TRADING ECONOMICS (@tEconomics) April 30, 2024
U.S. labor costs surged beyond forecasts in the first quarter, climbing 1.2% amid a boost in wages and benefits, reinforcing early-year inflation concerns. The Employment Cost Index (ECI) uptick may influence Federal Reserve deliberations as it navigates monetary policy amidst mounting price pressures.
Key Points:
- Employment Cost Index (ECI) rose 1.2% in Q1, surpassing expectations.
- Year-on-year labor costs increased 4.2%.
- ECI considered a key measure of labor market slack and core inflation predictor.
- Federal Reserve meeting underway; expected to maintain current interest rate range.
www.reuters.com/markets/us/us-labor-costs-increase-more-than-expected-first-quarter-2024-04-30/
Implications:
- Heightened inflationary pressures in early 2024.
- Potential impact on Federal Reserve’s interest rate decisions.
- Varied economist perspectives on future monetary policy adjustments.
The employment cost index soared this morning highlighting yet another thing the Fed has lost control on as they prematurely pivoted in December to ease financial conditions. The Federal Reserve should be hiking rates at this meeting or risk much higher rates in coming months.
— Don Johnson (@DonMiami3) April 30, 2024
10 year yield didn’t like that print.
Wen rate hike? pic.twitter.com/OS8SBv45H9
— QE Infinity (@StealthQE4) April 30, 2024