US wages gains will get Fed's attention; no rate hike yet

Federal Reserve Board Chairman Jerome Powell will try to tap on the economy's brakes so that growth continues without inflation. [Photo: AFP]

Wage gains at long last have made an appearance in the US economy after a baffling absence amid robust job growth but the Federal Reserve is expected to hold its fire next week.

Central bankers certainly will take notice of the recent data, with especial focus on everything contributing to inflation, but have made it clear they are committed to a gradual pace of increases in the benchmark lending rate, meaning the fourth hike of the year will not come until December.