US Treasury Secretary Scott Bessent said core inflation has fallen to 2.5%, while wages for the bottom quarter of American earners rose 5.5% — a sign that the economic recovery is reaching lower-income households.
The inflation reading
Bessent put the core inflation rate at 2.5% in his remarks. The figure is a key measure for policymakers, as it excludes food and energy costs, which tend to swing widely. He didn't provide a comparison to previous months.
Wage growth for lower earners
Workers in the bottom 25% of the income distribution saw their wages climb 5.5%, according to Bessent. That outpaces other groups, he said, though he didn't specify the exact rates for higher earners. The increase suggests that the lowest-paid workers are seeing faster gains than the rest of the workforce.
Distribution of gains
Bessent argued that the recent economic gains have become more evenly distributed across income levels. He said lower-paid workers are recording stronger wage growth compared to other groups, a shift from the pattern of past recoveries. The Treasury secretary's comments come as the administration faces questions about the cost of living and the pace of wage growth.
The numbers, if accurate, would suggest that the lowest-paid workers are catching up. Bessent's remarks highlight a trend that could shape policy debates in the coming months.
