Inside the Economy: Wages, Inflation, and Trade Agreements

This week on Inside the Economy, we dive into the current state of wage growth, job prospects, inflation trends, Federal Reserve activity, and emerging trade agreements. Wage growth, which experienced downward pressure following the Fed’s interest rate hikes starting in 2022, appears to be stabilizing. Currently, the average monthly wage per U.S. worker is around $7,000. How does this figure compare with wages in the E.U. and other nations? On the inflation front, the cost of borrowing (interest rates) exceeds the rate of inflation (CPI), a potentially positive signal for the economy. Is there mounting pressure on the Federal Reserve to cut rates this summer? Meanwhile, trade negotiations are gaining momentum. How significant is it for the U.S. to secure a balanced trade agreement with China? What elements of the recent E.U. deal stand out as particularly beneficial for the U.S.? And which other countries might be priorities in America’s trade strategy? Tune in to learn more!

 

Key Takeaways:

• Core PCE Inflation at 2.6% (YOY)
• 10-year bond yield at 4.37%
• ISM Services at 51.6