Hotter producer prices strengthen bets on a Fed rate hike
ETMarkets.comSynopsis
US producer prices rose, increasing rate hike expectations for the Federal Reserve. Traders now price a seventy percent chance of a quarter-point increase next week. Consumer inflation data due Friday will further influence the central bank's decision. Renewed Middle East conflict complicates the inflation outlook with rising oil prices. Market pricing suggests traders anticipate at least one rate hike by year-end.
