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Producer Prices Jump Most in Three Years, Complicating Trump’s Push for Rate Cuts

US wholesale inflation surged in July by the most in three years, dampening hopes for aggressive Federal Reserve rate cuts in September.

The Producer Price Index (PPI) data showed inflation accelerating through the economy, even as consumer prices remained relatively stable. This split between wholesale and consumer inflation has created uncertainty about Fed policy, with traders now seeing only a 90% chance of a September rate cut, down from certainty earlier in the week.

The data highlights ongoing tensions between President Trump’s push for lower rates and the Fed’s concerns about inflation risks from tariffs.

Bloomberg terminal showing gold spot price falling, beside gloved hands handling a 1000g gold bar — why is gold falling explained
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Gold Fell. China Bought Its Most in 17 Months. Here’s Why.

Five things drove gold and silver lower this week — a stronger dollar, spiking Treasury yields, the hottest US producer inflation in over three years, a new Federal Reserve chair, and a Trump-Xi summit with no deal. All five are documented and short-term. Meanwhile, the People’s Bank of China quietly made its largest gold purchase in 17 months. That contrast is the story.

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Bloomberg terminal showing gold spot price falling, beside gloved hands handling a 1000g gold bar — why is gold falling explained
News

Gold Fell. China Bought Its Most in 17 Months. Here’s Why.

Five things drove gold and silver lower this week — a stronger dollar, spiking Treasury yields, the hottest US producer inflation in over three years, a new Federal Reserve chair, and a Trump-Xi summit with no deal. All five are documented and short-term. Meanwhile, the People’s Bank of China quietly made its largest gold purchase in 17 months. That contrast is the story.

Read More »

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