U.S. Producer Prices Rose More Than Forecast in June

The video discusses the stronger-than-expected PPI reading and its implications for inflation, comparing it with CPI data. Frances Donald from Manulife Asset Management shares insights on inflation expectations and the Federal Reserve's potential actions. The debate on interest rate cuts, including the possibility of a 25 or 50 basis point cut, is explored. The divergence between PPI and CPI and its impact on bond and equity markets is also analyzed, with predictions for future trends.

What was the actual PPI reading compared to the expectations?

How does the recent inflation data relate to the Federal Reserve's goals?

What factors are contributing to the current inflationary pressures according to the discussion?

What are the implications of the PPI and CPI divergence observed in the last year?

What is the expected trend for the PCE number that the Fed watches?