According to the New York Post, wholesale prices in the United States accelerated again in February. It is a sign that inflation pressures in the economy are high and hot.
Shocker! The Oval Office resident didn’t solve the inflation problem.
The Labor Department said Thursday that its producer price index—which tracks inflation before it reaches consumers—rose 0.6% from January to February, up from 0.3% the previous month.
Measured year over year, producer prices rose by 1.6% in February, the most since last September.
The figures could present a challenge for the Fed, which meets next week and is counting on cooling inflation as it considers when to cut its benchmark interest rate, now at a 23-year high.
The Fed raised rates 11 times in 2022 and 2023 to fight high inflation.
With surging PPI inflation, there’s also room to worry that consumer inflation will increase in the months ahead as summer begins, as producers pass along chronically high costs to end-use consumers, writes Townhall‘s Spencer Brown.
3 months ago, markets were expecting at least 6 rate cuts in 2024.
Now, 3 rate cuts is beginning to look optimistic as inflation data worsens.
This week’s Fed meeting will set the tone as we enter Q2 2024.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) March 16, 2024
Biden has to know CPI/PPI numbers next week. Let’s see what the FUTS look like Sunday night. pic.twitter.com/KsTu45EqKu
— HULK (@HulkCapital) March 9, 2024
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