Free Trial

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
[TOPICS: MMUFE$,M$U$$$]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.