US PPI Hits 6.5% YoY, Highest Since 2022, But Below Expectations
Published 16 min ago1 sourceEvidence: Unknown
Inflation is broadening beyond initial hotspots, prompting Fed officials to question whether gradual rate hikes will suffice. This suggests a shift toward a more prolonged tightening campaign with no clear endpoint, increasing the risk of overtightening and market volatility.
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Broadening US inflation is increasing market expectations for a more aggressive and prolonged Federal Reserve tightening cycle, including a potential 50bp rate hike. This is strengthening the US dollar against major currencies, including the Mexican peso, which is assessed as vulnerable to further depreciation. Uncertainty remains regarding the Fed's precise actions and the peso's resilience.
Published 16 min ago1 sourceEvidence: Unknown
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