The year-on-year growth rate of the U.S. PPI in February slowed to 4.6%, compared to an expectation of 5.4% and a previous value of 6%, indicating that cost pressures have eased. Additionally, the spillover effects from the collapse of Silicon Valley Bank have led the market to believe that this increases the likelihood of the Federal Reserve slowing down interest rate hikes.

However, the previously released CPI data in the U.S. showed a year-on-year increase of 6%, which has declined for eight consecutive months but still indicates that inflationary pressures remain persistent, putting the Federal Reserve in a dilemma. What actions will the Federal Reserve take at its policy meeting next week?

The year-on-year growth rate of the U.S. PPI in February slowed to 4.6%, compared to an expectation of 5.4% and a previous value of 6%, indicating that cost pressures have eased. Additionally, the spillover effects from the collapse of Silicon Valley Bank have led the market to believe that this increases the likelihood of the Federal Reserve slowing down interest rate hikes. However, the previously released CPI data in the U.S. showed a year-on-year increase of 6%, which has declined for eight consecutive months but still indicates that inflationary pressures remain persistent, putting the Federal Reserve in a dilemma. What actions will the Federal Reserve take at its policy meeting next week?

PPI falls unexpectedly, another reason for the Federal Reserve not to raise interest rates?

目前債務水平高，通脹無情，地緣政治更加不穩定，爲什麼市場仍在推動大幅加息，而不考慮潛在後果？