
Soft Wage Growth May Keep Fed on Hold Amid Contained Inflation Risks
Pantheon Macroeconomics suggests that soft wage growth could lead the Federal Reserve to maintain its current policy stance, as inflation risks appear to remain contained.
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Pantheon Macroeconomics suggests that soft wage growth could lead the Federal Reserve to maintain its current policy stance, as inflation risks appear to remain contained.

Federal Reserve officials, including Governor Christopher Waller, are indicating a willingness to consider a rate hike if upcoming inflation data remains high. This stance has led to increased speculation about a potential July rate hike, despite some concerns about a faltering labor market.
Pantheon Macroeconomics suggests that the strong growth observed in Q2 GDP is likely to diminish in the near future.

Pantheon Macroeconomics predicts a potential snapback in employment participation and an increase in unemployment during the second half of the year.

Pantheon Macroeconomics continues to project a 1.5% GDP growth rate for the second quarter.