Broad-market hopes for an accelerated pace of rate cuts from the US Federal Reserve (Fed) reached a fever pitch on Friday despite a notable upswing in US Producer Price Index (PPI) wholesale inflation. The Fiber extended into a third straight week of gains as investor risk appetite gets pinned to the ceiling.Forecasting the Coming Week: Fed rate cut bets and the ECB should rule the sentimentJune’s core Producer Price Index (PPI) for wholesale inflation in the US rose to 3.0% YoY, surpassing the expected 2.5%. The previous period’s figure was adjusted upward to 2.6% from the initial 2.3%. Despite the notable increase in producer-level inflation, market focus has shifted to the earlier decrease in Consumer Price Index (CPI) inflation, raising expectations for a rate cut.The CME’s FedWatch tool indicates a significant likelihood of a quarter-point rate cut at the Federal Open Market Committee’s (FOMC) meeting on September 18. Rate traders are currently factoring in at least three rate cuts by 2024, more than the one or two cuts projected by the Fed by December.More By This Author:GBP/USD Rises To 12-Month High On Friday As Markets Pile Into Rate Cut Hopes
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