US Labor Costs Rise Moderately in Third Quarter
US labor costs increased at a moderate pace in the third quarter due to slower wage growth. The data indicates the labor market is not currently adding to inflation pressures.
United States labor costs increased 0.8% in the third quarter as wage growth slowed, signaling that the labor market is unlikely to generate fresh inflation risks. The moderation follows the Federal Reserve maintaining its benchmark overnight interest rate in the 3.75%-4.00% range. For investors, the cooling labor-cost pressures suggest the central bank has more room to manage ongoing inflation drivers stemming from conflicts involving Israel and Iran alongside heavy artificial intelligence investments.
