The U.S. PPI has just been released, and it came in much worse than expected.
PPI surged to 6.3%, its highest level since December 2022.
Yesterday, both CPI and Core CPI came in above expectations, and now PPI inflation is also heating up.
At the same time, the economy is starting to slow as the job market deteriorates.
Kevin Warsh is also set to speak tomorrow, and he’ll be in a difficult position.
That’s because Kevin has pledged to bring inflation down to 2%, which can’t be done without aggressively raising interest rates.
But if the Fed raises rates while the economy is weakening, it will make things worse for consumers and could even push the economy into a recession.
PPI surged to 6.3%, its highest level since December 2022.
Yesterday, both CPI and Core CPI came in above expectations, and now PPI inflation is also heating up.
At the same time, the economy is starting to slow as the job market deteriorates.
Kevin Warsh is also set to speak tomorrow, and he’ll be in a difficult position.
That’s because Kevin has pledged to bring inflation down to 2%, which can’t be done without aggressively raising interest rates.
But if the Fed raises rates while the economy is weakening, it will make things worse for consumers and could even push the economy into a recession.