U.S. Unemployment Falls to 4.2% as 3.5% Wage Growth Eases Inflation Pressure
Updated
Updated · The New York Times · Jul 2
U.S. Unemployment Falls to 4.2% as 3.5% Wage Growth Eases Inflation Pressure
3 articles · Updated · The New York Times · Jul 2
Summary
June unemployment edged down to 4.2% as average hourly earnings rose a muted 0.3% from May and 3.5% from a year earlier, reinforcing that the labor market is not fueling inflation.
Those wage gains have been outpaced by recent price increases, giving Fed Chair Kevin Warsh more room to keep price stability ahead of other goals while inflation remains above the 2% target.
Consumer prices have accelerated since April on higher energy costs tied to the Iran war and AI-related price pressures, though oil, gasoline and shipping costs have fallen sharply in recent weeks.
Warsh said in Sintra on Wednesday that inflation expectations and risks had moderated, suggesting the latest inflation shock could fade if a deal to end the conflict holds.