Economics
Wage Slowdown May Be Positive Sign in Tight U.S. Job Market, Summers Says
- Ex-Treasury chief warns against Fed making strong predictions
- Policy makers still face ‘turbulent waters,’ Summers says
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Former Treasury Secretary Lawrence Summers drew encouragement from the softening in U.S. wage gains seen in April, though reiterated his long-standing view that an extremely tight labor market makes it very challenging for the Federal Reserve to rein in inflation.
“Wage growth was a little bit slower than I expected -- that could conceivably be a sign of positive things to come on inflation,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “But that certainly wouldn’t be a judgment we could reach yet.”