Traders stop fully pricing in a Fed rate hike this year after softer July PPI

Markets are no longer fully pricing in a Federal Reserve rate hike this year after U.S. July PPI (Producer Price Index, a wholesale inflation gauge) rose more slowly than expected. The softer inflation reading led traders to reduce the extent to which they had been factoring in another rate increase this year, signaling a shift in expectations for the Fed’s policy path.

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