FRESH US DATA: INFLATION COMES IN LOWER THAN EXPECTED

Markets just received an important signal: US Producer Price Inflation (PPI) for August came in weaker than analysts had forecast. This could become a key factor for the Federal Reserveโ€™s upcoming interest rate decision.

โœ… Report results:

Monthly: -0.1% (forecast +0.3%, previous +0.9%)

Yearly: 2.6% (forecast and previous 3.3%)

๐ŸŸข For markets, this is positive news. Why? Because Julyโ€™s โ€œspikeโ€ in inflation now looks more like a one-time event rather than the start of a new upward trend. With wholesale prices falling, consumer prices may also rise more slowly in the coming months.

๐Ÿ“‰ Another important detail: labor market data has been revised, showing employment is weaker than previously believed. Together, this paints a picture of a cooling economy.

๐Ÿ’ก What does this mean for the Fed? The chances are rising that policymakers might opt for a bigger move โ€” cutting rates by 0.5% instead of the standard 0.25%.

๐Ÿš€ For markets, this could trigger a short-term rally. Both stock indices and cryptocurrencies may see upward momentum leading up to the Fedโ€™s meeting.

๐Ÿ‘‰ The big question: will the Fed take the bold step of a 0.5% cut, or will it play safe with just 0.25%?

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