The head of Payne Capital Management, Ryan Payne joins the markets in the markets.
US -produced prices rose completely in January and provide more evidence Inflation was being removed Re -reinforce the views of the financial market that the Federal Reserve does not lower interest rates before the second half of the year.
The Ministry of Labor Statistics (BLS) said on Thursday that the production price index for final demand increased by 0.4 % last month. Economists voted by Reuters predicted that PPI would increase by 0.3 %. In 12 months to January, PPI advanced to 3.5 % after a 3.3 % increase in December.
The report was released on Wednesday that consumer prices have the highest speed in January of about 1-1/2 years, hoping US Central Bank The cutting rate resumes in June. Financial markets are currently expecting a decline in rates in September, although some economists believe that the window has been closed to reduce policies, citing strong domestic demand and a sustainable labor market.
Inflation rises 3 % in January, hotter than expected
Seat Jerome Powell “We are close but there is no inflation,” he said to the lawmakers on Wednesday, “he said.” We want to limit politics for now. “
The Federal Reserve left its criterion during the January 4.25 % -4.50 % of its criterion and reduced 100 base points in September when it began its policy relief cycle. Policy rates rose by 5.25 percent in 2022 and 2023 to domesticate inflation.
Trump calls for the lower rate of interest to “hand over the hands”: “Let's Rock & Roll, America”
President Donald Trump Financial, trade and immigration policies are observed that stimulate inflation. The 25 % tariff of Canada and Mexico has been suspended until March. But 10 % additional tariffs for Chinese goods were implemented this month.
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According to the PPI report in January, BLS updated weights to reflect price movements in 2024 and seasonal adjustment factors, a model that the government uses to eliminate seasonal fluctuations.