What's happened
The Federal Reserve is expected to keep interest rates steady amidst rising worker compensation and concerns over persistent inflation.
Why it matters
The Federal Reserve's decision to maintain interest rates reflects ongoing concerns about inflation and its impact on the economy. Rising worker compensation adds to these worries, highlighting the challenges faced by policymakers in balancing economic growth and price stability.
What the papers say
The Independent reports that rising worker compensation in the US is fueling concerns about higher inflation and its implications for Federal Reserve policy decisions. Meanwhile, Business Insider UK notes that investors should not expect interest rate cuts this year, as the Federal Reserve grapples with persistent inflation.
How we got here
Recent data showing an increase in US worker compensation has raised concerns about the potential for higher inflation. The Federal Reserve faces the challenge of managing inflation while supporting economic growth through its monetary policy decisions.
Common question
More on these topics
-
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
-
The Federal Reserve System is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the m
-
The Office for National Statistics is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to the UK Parliament.
-
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.
-
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
-
Jerome Hayden "Jay" Powell is the 16th Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by President Donald Trump, and confirmed by the United States Senate.
-
A bank is a financial institution that accepts deposits from the public and creates a demand deposit, while simultaneously making loans. Lending activities can be performed either directly or indirectly through capital markets.
-
Andrew John Bailey is a British central banker who has been Governor of the Bank of England since 16 March 2020.
Previously he served as the Chief Cashier of the Bank of England from January 2004 until April 2011, Deputy Governor of the Bank of England fr
-
Rishi Sunak is a British politician who has served as Prime Minister of the United Kingdom and Leader of the Conservative Party since 2022.
-
Jeremy Richard Streynsham Hunt is a British politician serving as Member of Parliament for South West Surrey since 2005. A member of the Conservative Party, he served in the Cabinet from 2010 to 2019, most recently as Foreign Secretary from 2018 to 2019.