US worker paycheck growth slowed late last year, pointing to cooling in a very strong job market

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Pay and benefits for America’s workers slowed last quarter, a trend that could affect the Federal Reserve’s decision about when to begin cutting interest rates. Compensation as measured by the government’s Employment Cost Index rose 0.9% in the October-December quarter, down from a 1.1% increase in the previous quarter, the Labor Department said Wednesday. Compared with the same quarter a year earlier, compensation growth slowed to 4.2% from 4.3%. The increase in wages and benefits was still mostly healthy, but the slowdown could contribute to the cooling of inflation.