Wage growth disappoints

Wages grew by 0.2% in the second quarter, according to the latest employment cost index.

Expectations were for the report to show wages ticked up 0.6% in the second quarter after a 0.7% rise in the first quarter.

This is the final ECI report before the September Fed meeting, and so this report will take on added significance as the Fed weighs whether to raise interest rates for the first time in 9 years.

And so with a bit of a disappointment in Friday’s report, the Fed could be persuaded that wage and inflation pressures are still a ways off.

More to come …

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