"U.S. Employee Costs Rise Slowest in 2.5 Years"

The cost companies pay to employ workers in the U.S. rose at the slowest pace in two and a half years, indicating a slowdown in rapid wage growth following the pandemic. Compensation increased at a 4.2% pace in the 12 months ended in December, the smallest increase in two years but still above the Fed's preferred rate. Wages and benefits both saw slower growth, reflecting a return to more normal levels after spiking in recent years. However, labor costs are still rising too fast for the Fed's comfort, potentially influencing the decision on future interest rate cuts.