💥 $BTC ALERT: US PPI JUMPS ABOVE EXPECTATIONS
U.S. December PPI came in at 3.0%, higher than the 2.7% forecast, showing inflation pressures at the producer level are picking up again.
Why it matters: PPI often leads CPI, so rising costs for producers now could mean higher prices for consumers soon. Core inflation isn’t cooling — it’s heating back up.
For markets already nervous, this is a problem. Higher inflation makes aggressive rate cuts less likely and adds pressure on the Fed, especially with questions around Jerome Powell and Fed leadership.
Interest rates, liquidity, and risk assets may face more challenges ahead. The idea that “inflation is under control” just got hit hard.
Will the Fed stay patient, or will this push them to rethink policy sooner than expected?