AGENCY: LOWER THAN EXPECTED PPI WILL HELP THE FEDERAL RESERVE MAINTAIN INTEREST RATES

On 16 July, Steve Rick, Chief Economist of TruStage, reported that United States PPI data were below market expectations and a positive development for the Fed. “This suggests that inflation may be coming closer to the Fed's goal and may further reinforce market expectations that policymakers can maintain interest rates unchanged without considering further interest rates hikes.” He noted that while the fight against inflation had not yet been completed, the weakening of price data meant that the Federal Reserve had taken another step towards achieving a better balance between price stability and maintaining a healthy labour market. Kim Xian