Employment Costs Index Rose 0.7%

Posted by Louis Navellier on 4/30/08 10:42 am

The Employment Costs Index rose 0.7% in the three months to March, one tenth less than expected.  Bad headline, but good components ... the lack of wage inflation in the report helped allow the Fed to cut interest rates today.  What’s more, the Fed should be able to keep rates low for some time.  “As long as wage gains remain depressed – hourly wages have been slowing for more than a year now – the Fed can keep short rates very low without fear of stoking inflation,” said economist Ian Shepherdson at High Frequency Economics.

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