US wage growth is slowing and not keeping pace with inflation — but that doesn't mean the Fed will stop hiking rates

• Growth in US wages and salaries slowed to 1% in the fourth quarter of 2022, down from 1.3% in the previous quarter.
• However, wages and salaries actually declined by 1.2% for the whole of 2022, due to high inflation.
• As inflation remains high, the Fed may continue hiking interest rates — meaning wage growth could continue to trend slower. 

US wages rose slightly in the fourth quarter of 2022 — but that still meant a pay cut, as the pay bump did not keep pace with rising inflation.