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Fed May Lean Toward Four Rate Increases in 2018 After Wages Data

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U.S. Economy Expanded at 2.3% Pace in First Quarter

Faster U.S. wage gains probably nudge the Federal Reserve toward raising interest rates a total of four times this year, rather than the three moves officials had penciled in for 2018 when they met in March.

“At the margin, this pushes in that direction,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York on Friday after news that first quarter employee compensation climbed 2.7 percent over the past 12 months, the strongest gain since 2008.