Higher wages don’t have to mean higher inflation. That could matter for Bitcoin
Summary
US nonfarm business productivity rose 3.6% in the third quarter, while unit labor costs fell 0.7% quarter over quarter on an annualized basis, despite hourly compensation rising 2.9%. The improvement may ease some inflation concerns and, if it lowers expected interest rates and financing costs, reduce a potential headwind for Bitcoin. But unit labor costs were still 2.4% higher than a year earlier, and the data do not establish October productivity or guarantee easier Fed policy. The Fed has described productivity growth as strong while also saying inflation remains elevated, underscoring the uncertainty.
