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’

--With assistance from Jeanna Smialek.

To contact the reporter on this story: Katia Dmitrieva in Washington at edmitrieva1@bloomberg.net

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Jeff Kearns

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