Fed Gets More Good News As Key Comp Cost Measure Recedes

The rate of compensation cost increases was slower than expected in Q2, a closely-watched update on one of the Fed's favorite metrics showed. The Employment Cost Index rose 0.9% last quarter, the BLS said Wednesday. Economists were looking for a 1% gain. Recall that Q1's ECI headline was the quickest since 2022. By contrast, Q2's unrounded print was the slowest in three years. This constitutes yet another piece of evidence to suggest the succession of a warm reads on inflation and pay growt