US Q2 employment cost index +1.3% vs +1.2% expected

• Prior was +1.4%
• Wages +1.4%
• Employment benefits +1.2%

Powell specifically cited this report in his FOMC press conference, saying:

"There’s some evidence that wages—if you look at average hourly earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term they appear to be moderating. Not so yet from the other wage measures, and we’ll be getting the employment compensation index measurement, I think, on Friday, I guess, and that’s a very important one because it adjusts for composition."

This certainly isn't the kind of number that's going to get the FOMC hawks cheering for rate hikes.

Now if you look at quarterly annualized growth in wages ex-incentive paid occupations (something the Fed apparently watches) you see a bit of a cooling.

But it's still coming in at over 5%. pic.twitter.com/6zG2fmreMI

— Nick Bunker (@nick_bunker) July 29, 2022