Rising Wages Complicate Fed's Inflation Battle.

Wages and salaries in the US rose 5% in March from a year ago, in line with inflation, according to the Bureau of Labor Statistics. The persistently strong wage gains are both a blessing and a curse for policymakers, as they help sustain consumption and prevent the economy from sliding into recession despite the central bank’s aggressive interest rate hikes, but also signal the fight against inflation is far from over. The recent spike in wages, which began in late 2020, comes after years of stagnation following the Great Recession.