On Friday, the Employment Cost Index was released by the US Bureau of Labor Statistics, demonstrating that workers continued to experience wage gains in the first quarter of 2023. In particular, labor costs have been high for employers in low-skill industries like the service sector as many of the wage gains have been made in these areas of the labor market. The Federal Reserve has been awaiting this data because high labor costs can drive inflation, and so these wage gains reflect a persistent factor contributing to inflation and economists predict there is an increased likelihood that the Fed will raise interest rates again next week. Some believe that a weakened labor market is necessary to break the current inflation cycle.
See "Employment Cost Index indicates persistent wage gains for US workers, driving up labor costs for employers and fueling inflation", Bryan Mena, CNN Business, April 28, 2023