Institution: A PPI below expectations helps the Federal Reserve keep interest rates unchanged

Golden Finance reported that on July 16, Steve Rick, Chief Economist at TruStage, said in a report that the US PPI data came in below market expectations, which is a positive development for the Federal Reserve. “This suggests that inflation may be gradually approaching the Fed’s target, and may further reinforce market expectations that policymakers can keep interest rates unchanged without considering additional rate hikes.” He noted that although the work to fight inflation is not yet finished, softer price data means the Federal Reserve has taken another step forward in achieving a better balance between delivering price stability and maintaining a healthy labor market. (Jin Shi)
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