Skip to content
Markets
Economics

U.S. Labor Costs, Consumer Spending Keep Heat on Fed for Aggressive Rate Hikes

  • Real spending, employment costs beat estimates in data Friday
  • Fed will need to move with caution amid geopolitical concerns
Video player cover image
El-Erian: Fed Has No Choice But to Raise by Half-Point

Accelerating U.S. labor costs and a resilient consumer are fanning inflation, effectively giving the Federal Reserve the green light to raise interest rates a half point next week to tamp down price pressures.

Data Friday showed that first-quarter employment costs rose by the most in comparable data back to the early 2000s and inflation-adjusted spending unexpectedly increased last month.