U.S. August producer prices matched analysts’ expectations, rising 0.4% MoM.
Market attention shifts to tomorrow’s CPI print. CME’s FedWatch tool shows
market-implied odds of a September rate hike near 70%. After the CPI release,
economists will update forecasts for the Fed’s preferred inflation gauge, the
PCE price index. If CPI comes in below expectations, that would further support
a view that the Fed will keep rates unchanged. Northlight Asset Management CIO
Chris Zaccarelli said: "Although a hike at the October meeting is possible, the
The odds of the Fed starting a new tightening cycle are extremely low."
