At this point, investors do not need any more reminding of the headwinds that the economy and markets are confronting. Today’s PPI reading, while inline with estimates on a monthly basis (+0.5%), still showed a y/y gain of 11% (down from 11.5% in March). The Fed remains committed to their 50bps approach with even Bullard backing that in statements last night. So that means markets continue to price in a higher rate environment, and a potential recession, and the fact that the Fed will also be reducing their balance sheet (making the Fed put gone for now).
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