Fed’s Jerome Powell: Wages not rising at rate that would spark higher inflation

FILE PHOTO: Federal Reserve Chair Jerome Powell prepares to testify before a Senate Banking Committee hybrid hearing on oversight of the Treasury Department and the Federal Reserve on Capitol Hill in Washington, U.S., November 30, 2021. REUTERS/Elizabeth Frantz

U.S. wages are rising as the economy continues to rebound from the blow dealt by the coronavirus pandemic, but the increases are not happening at a pace that could spark higher inflation, Federal Reserve Chair Jerome Powell said on Wednesday.

“We have seen wages moving up significantly,” Powell said during a hearing before the U.S. House of Representatives Financial Services Committee. “We don’t see them moving up at a troubling rate that would tend to spark higher inflation, but that’s something we’re watching very carefully.”

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