Analysts: PPI lower than expected has no impact on the Fed's decision next week, and a 25BP rate cut is on the board
Source: Odaily
Time: 2025-09-11 14:44:08
Odaily Planet Daily News Michael Brown, senior research strategist at Pepperstone, said that the lower-than-expected U.S. PPI data had no effect on the Federal Reserve's Open Market Committee's (FOMC) decision, and a 25 basis point cut next Wednesday is a foregone conclusion. He added that money market pricing shows a slight probability of a 50 basis point rate cut, which could heat up further if the CPI data is equally weak. But given the upside price risks brought by tariffs and the uncertainty of the current policy stance’s tightening, the Fed will still restart the easing cycle at a more modest level at its September meeting as planned. (Jin Shi)