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Fed cut is a bad ‘good idea’ [Video]

Markets were rattled after US PPI came in scorching hot, casting doubt on the Fed’s ability to deliver the rate cuts the government is pushing for. Headline PPI surged from 2.4% to 3.3% – the biggest jump in three years – while core inflation blew past expectations. The takeaway? Companies may have absorbed tariffs so far, but the pressure could soon hit consumers. Despite the warning signs, risk appetite is running high. In the corporate spotlight, Intel jumped 7% after news the US government may take a stake – a sudden turnaround from Trump’s call for its CEO’s resignation just last week. With government stakes in Nvidia, AMD, and now possibly Intel, the chip game is getting political. Overseas, UK growth surprised, Eurozone data disappointed, and oil prices bounced on geopolitical risks ahead of Trump/Putin’s upcoming meeting!

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Author

Ipek Ozkardeskaya

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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