US Paychecks Are Outpacing Inflation, Giving Fed Fodder for Hike

US workers are starting to see pay gains run faster than inflation, amplifying their purchasing power and giving the Federal Reserve reason to raise interest rates again next month.

Median weekly earnings of full-time wage and salary workers were 6.1% higher in the first quarter of 2023 compared to the same period a year earlier, the Bureau of Labor Statistics said in a report Tuesday. Inflation during that time ran at 5.8%, the BLS said.

The data signify that Americans may be finally starting to stretch their dollars further, as wage gains have generally lagged inflation over the past ...