1216 GMT - The latest U.S. producer-price inflation data has slightly brought forward market expectations of when the Federal Reserve will cut interest rates. Wednesday's above-forecast CPI data pushed market pricing of a first Fed rate cut out to December. Money markets now fully price a rate cut in October, with a high chance of a reduction in September. The PPI report showed that components which feed directly into the Fed's preferred measure of inflation--the PCE deflator--were generally lower in January, says MUFG's Lee Hardman in a note. The PPI data don't justify a Fed rate cut any time soon but have "helped to bring forward expectations for the timing of the next Fed rate cut a little," he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
February 14, 2025 07:16 ET (12:16 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.