ARLINGTON, Virginia (Reuters) - Federal Reserve Chairman Ben Bernanke said U.S. wage growth is too soft to present an inflation risk and points to a labor market was still operating below its potential.
“Wages are not a major concern for inflation,” Bernanke said in response to questions from business economists. “We still need to be concerned about commodity prices and other factors but wages at this point remain quite subdued.”
“The slow rate of wage growth is probably consistent with the relatively weak labor market and a high degree of cyclical unemployment,” he said.
Reporting By Pedro da Costa and Jason Lange