Stocks are climbing this morning and yields falling with some calm returning to the markets as U.S. producer prices (PPI) increased less than expected in July as a rise in the cost of goods was tempered by cheaper services, indicating that inflation continued to moderate.
The Producer Price Index (PPI) for final demand rose by 0.1% in July, following an unrevised 0.2% increase in June, according to the Labor Department's Bureau of Labor Statistics on Tuesday 13th August 2024. Economists surveyed by Reuters had predicted a 0.2% rise in the PPI. Over the 12 months through July, the PPI grew by 2.2%, down from a 2.7% increase in June.
These indicators are going in the right direction for the Fed to ease interest rates. With inflation slowing and the labor market cooling, financial markets are increasingly expecting the Federal Reserve to begin an easing cycle in September. The Fed is particularly concerned about labor market weakness, highlighted by a sharp rise in the u ...
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