US PPI Shocker Hits 6% in April 2026, Crushing Fed Rate Cut Hopes
BeInCrypto
The US PPI jumped 6% in April 2026, significantly exceeding forecasts and raising concerns about interest rate hikes.Summary
The US Producer Price Index (PPI) for final demand surged by 6% in April 2026, the highest level since January 2023, far exceeding the 4.9% consensus forecast. This spike was primarily driven by a 1.2% increase in services and a 2% rise in goods, with energy prices climbing 7.8% due to geopolitical tensions in Iran.
As a result, markets are repricing the Federal Reserve's path, with Treasury yields rising and equity futures selling off. The data has reignited fears of stagflation and increased the likelihood of interest rate hikes rather than cuts, leading institutions like Goldman Sachs to push back rate-cut forecasts.
(Source：BeInCrypto)