Institution: The latest data gives the Federal Reserve no reason to cut interest rates
Analyst Paul Stanley of Granite Bay Wealth Management wrote in his commentary on the January PPI report that the Federal Reserve "has no reason to cut interest rates now". The 0.4% increase was higher than economists' expectations from previous surveys, but lower than the revised 0.5% increase in December last year. Prior to this, yesterday's CPI data also exceeded expectations. Stanley said: "The timing of inflation is very special because the economy is preparing for tariffs, and if tariffs continue, it may add another type of inflationary pressure." He added that fixed income investors might see an opportunity to lock in higher returns at this time.
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