Fed's Yellen: Seeing Slightly Faster Wage Growth in U.S.

The video discusses recent trends in wage growth, highlighting a slight increase in average hourly earnings over the past year. It examines various wage indicators, such as the Atlanta Fed Wage Tracker, and considers the impact of labor market improvements. However, it notes that slow productivity growth is a negative factor affecting wage growth. The video concludes by discussing sustainable wage growth in relation to a 2% inflation target, suggesting that wages can grow at the rate of productivity growth plus inflation.

What has been the trend in average hourly earnings over the past year?

• A decrease of 1%

• An increase of 2.5%

• No change

• A decrease of 2.5%

Which indicator is mentioned as showing improvement in wage growth?

• Chicago Fed Wage Tracker

• San Francisco Fed Wage Tracker

• Atlanta Fed Wage Tracker

• New York Fed Wage Tracker

What is one factor that negatively affects wage growth compared to the 1990s?

• High inflation

• Increased labor force participation

• Rapid technological advancement

• Slow productivity growth

According to the transcript, what is a sustainable level of wage growth?

• Twice the inflation rate

• Half the productivity growth

• Inflation rate minus productivity growth

• Productivity growth plus inflation rate

What is the inflation target mentioned in the transcript?

• 3%

• 4%

• 2%

• 1%