Inflation Pressures Surge, Prompting Investors to Scale Back Expectations of Near-Term Fed Rate Cuts

• Producer Price Index (PPI) report shows acceleration of price pressures, surpassing expectations • Rising gasoline prices contributed significantly to the PPI increase • Higher inflation reports reduce likelihood of imminent Fed rate cuts forecasted for 2024-2025 • Economists now expect fewer Fed rate cuts through end of 2023 due to resilient economy and consumers • Treasury yields surged, bonds and stocks fell, dollar rebounded, gold and Bitcoin prices dropped after latest inflation data