Federal Reserve Chairman Jerome Powell said Thursday that there are no "decisive" signs of wage inflation yet.
Speaking in testimony before the Senate Banking Committee, the central bank head also said more gains can come in the labor market without causing harmful levels of inflation.
The remarks are significant in that during Powell's remarks two days ago before the House Financial Services Committee were interpreted as being more concerned about inflation, leading the Fed to a more aggressive path in interest rate hikes.
"We don't see any strong evidence yet of a decisive move up in wages. We see wages by a couple of measures trending up a little bit, but most of them continuing to grow at two and a half percent," he said. "Nothing is suggesting to me that wage inflation is at a point of accelerating. I would expect that some continued strengthening in the labor market can take place without causing inflation."