Economic Indicators Suggest Reduced Urgency for Interest Rate Cuts

Qinbafrank posted on X that recent economic data has shown a divergence from expectations, impacting the urgency for interest rate cuts. On Wednesday, the Producer Price Index (PPI) and core PPI exceeded forecasts, alongside a positive retail sales monthly rate. Thursday saw the New York Federal Reserve's manufacturing index surpass expectations, while initial jobless claims were lower than anticipated. These indicators suggest the economy is performing better than expected, reducing the immediate need for interest rate reductions. Additionally, U.S. President Donald Trump announced that Kevin Hassett, a prominent advocate for significant rate cuts and a candidate for Federal Reserve Chair, will remain at the White House. This decision further diminishes market expectations for imminent rate cuts.