Powell Says U.S. Workers and Wages Are Better Off Today
(Bloomberg) -- Federal Reserve Chairman Jerome Powell said in testimony before the Senate Banking Committee that the typical worker is better off in today’s labor market.
- Wage gains are still better than trend inflation: Powell
- Senator Sherrod Brown, top Democrat on panel, asked Powell about real wages in light of perceived weak growth
- Prime-age labor force participation climbing is “a very healthy sign,” Powell says
- “We really hope that these gains in participation can be sustained”
- People on edges of labor force have benefited the most: Powell
- “In tight labor markets, workers are more likely going to be paid well”
- Says Fed doesn’t control most things driving down labor share
- NOTE: Wage gains missed forecasts in June and have been tepid despite a tight labor market
- NOTE: Fed has been focused on quandary of why labor force participation anemic
- Earlier: Fed’s Powell Says Gradual Rate Hikes Are the Best Path ‘For Now’
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