Traders Push for Fed Rate Cut After PPI Data Shows Inflation Cooling

The recent Producer Price Index (PPI) release has led traders to anticipate a possible Federal Reserve rate cut in September, with expectations now reaching 91.7% for a 25 basis point reduction. This move follows the decrease in inflation rates as reflected by PPI data. While a 50 basis point cut is still on the table, it holds only a 8.3% chance of happening. The upcoming FOMC meetings scheduled for September 17 and October 29 will provide clarity on the Fed’s stance regarding interest rates.