The Employment Cost Index, which measures employee salaries and benefits, rose 1.2% in the first quarter of 2024, indicating that inflation pressures remain high. This raises concerns that the 11 interest rate hikes by the Federal Reserve may not have been sufficient to curb inflation. The Fed is expected to maintain its current rate policy for now, while considering the timing of potential rate cuts later this year.
Inflation rose unexpectedly in March, exceeding the Federal Reserve's target. The increase in prices has caused concern and shifted market expectations for interest rate cuts, with financial markets now predicting fewer cuts than previously anticipated. Key data releases later this week could influence the Fed's future decision-making.
