#U.S.PPI hit two-and-a-half-year

📈 U.S. PPI hits a two-and-a-half-year high – and the Fed’s rate cut dream just got crushed. Again.

First CPI, now PPI.

The numbers:

May PPI: +5.2% YoY (highest since Nov 2022)

Month-over-month: +0.8% – way above expectations

Main culprit? Energy prices, up 3.9% in just one month.

Back-to-back inflation shocks. Markets were already jittery after last week’s hot CPI. Now this. The takeaway? Inflation isn't cooling – it's stubbornly clinging to every corner of the economy.

The market flipped fast:
🔹 Odds of a rate hike this year jumped to ~43%
🔹 Stocks felt it – all three major indexes dipped in sync
🔹 Rate cut hope? Pushed further into 2025, maybe beyond

Here’s the human truth:
The Fed wanted to pause, maybe even cut. But with energy surging and producer prices running hot, they can’t. Not without risking a second spike. And for regular people? That means borrowing costs stay high – mortgages, car loans, credit cards. Businesses face higher input costs, which eventually hit your wallet.

Watch the next jobs report. Watch consumer spending. If those stay strong, the Fed might actually hike again before they even think about cutting.

If you’re in crypto – expect volatility. Inflation fears = risk-off moves sometimes.

If you’re in stocks – defensive sectors (energy, consumer staples) might hold better.

If you’re waiting for lower rates – keep waiting.

👇 How are you positioning right now? Still betting on a 2024 cut, or bracing for more hikes?