Microsoft’s salary freeze is the latest sign that US inflation is cooling, David Rosenberg says.
The tech giant’s move suggests a dangerous wage-price spiral isn’t underway, he notes.
The veteran economist pointed to new inflation data as evidence of slowing price growth.
Microsoft’s decision to not raise salaries for its full-time employees this year, and new inflation data for April, both signal a slowing pace of price growth in the US, according to David Rosenberg.
“Adding to today’s disinflation news — Microsoft hitting the tapes stating that it won’t be giving raises to full-time employees this year,” the veteran economist and Rosenberg Research president said in a Wednesday tweet. “What ever happened to that 1970’s wage-price spiral??”
Microsoft CEO Satya Nadella wrote in an internal email that salaried employees will not receive raises this year as tricky economic conditions are affecting customer demand, the labor market, and the company’s need for…
This article was written by Zinya Salfiti and originally published on markets.businessinsider.com