Robust PPI Data Complicates the Fed's Rate Cut Path

Jin10 Data, May 13 – According to CME's 'FedWatch,' the market has currently priced in over a 30% probability of a rate hike before December. Following the unexpectedly strong U.S. April PPI data, the market believes it will be significantly harder for the Federal Reserve to justify any rate cuts this year. April PPI rose by 1.4%, noticeably higher than economists' consensus forecast of 0.5%, indicating stronger-than-expected inflationary pressures and reinforcing the market's trend of repricing the interest rate path.