U.S. Average Hourly Earnings Rise 0.1%, May Limit Fed Tightening

U.S. average hourly earnings rose 0.1% in September from August, extending the slowdown in pay growth and potentially limiting how long the Federal Reserve can sustain tight monetary policy.

The modest increase followed a period of weakening wage momentum and may keep the Fed from sustaining a prolonged tightening cycle. The figures add to market attention on the direction of U.S. monetary policy as investors assess labor-market conditions.

The Federal Open Market Committee is scheduled to release minutes from its September meeting Wednesday, Oct. 7. Investors will examine the record for officials’ views on the outlook for interest rates and the broader policy path.

The minutes will provide the next detailed look at how Fed officials evaluated economic conditions during their September meeting.