Yellen Excerpt: Expect Wage Gains From Tight Labor Market

     WASHINGTON (MNI) - The following is a response of Federal Reserve Chairman

Janet Yellen to a question from a reporter at her press conference following

Wednesday's Federal Open Market Committee meeting.

Question from :

     You have mentioned that the committee thinks there will be wage increases

next year. I'm wondering if you could clarify if that is coming in parts or

mostly from the changes to the tax plan, is that what the expectation is would

drive the wage increases? 

Yellen:

     Generally, in the strong labor market where many firms are having

difficulty finding qualified workers, we would expect just through normal demand

and supply channels to see some upward pressure on wage growth over time. And as

the labor market is tightened, we have seen some very gradual drift upward in

wage gains. It remains at a low level but would expect in the context of an

ongoing strong labor market to see some upward pressure, and I believe that is

the main thing that my colleagues are factoring in. 

--MNI Washington Bureau; +1 202-371-2121; email: holly.stokes@marketnews.com

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