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)
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