PPI Report Timing and CPI Figures May Determine September Fed Rate Reduction
The Producer Price Index (PPI) report for August 2025 is set to be published on Wednesday, September 10, 2025, at 8:30 a.m. Eastern Time.
The plight of Cassandra. Analysts anticipate that both CPI and PPI will be high, prompting institutions to offload their assets onto retail in the wake of the reports. This will result in a short but severe decline that will eliminate many weak hands. Here’s what to be aware of:
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PPI Report Timing: Could Inflation Block Fed Rate Cuts?
The next 48 hours will reveal the extent of stagflation’s severity.
PPI tonight / CPI tomorrow. pic.twitter.com/pCs3NdpF4p
— The Great Martis (@great_martis) September 9, 2025
The most significant reports this week will be the Producer Price Index (PPI) on Wednesday and the Consumer Price Index (CPI) on Thursday. Both of these will examine whether Trump’s tariffs are affecting the Fed’s decision to lower interest rates.
The year-over-year CPI is projected to be +2.9%, increasing from +2.7% in July. Core CPI is estimated at +3.1%, aligning with February figures and remaining well over the Fed’s 2% goal. On the wholesale front, PPI is expected to show +3.3% headline and +2.8% core, also on an upward trend.
As per Dow Jones, economists expect monthly gains of 0.3% across the board. This would elevate headline inflation to its highest level since January.
At first glance, inflation figures with a ‘3’ in both CPI and PPI could unsettle the markets. Furthermore, the recent weak job figures provide the Fed with justification to execute its other goal: enhancing employment. It’s crucial to highlight that interest rate reductions are still an option despite inflation concerns, as decision-makers view greater risks in labor crypto market decline than transient inflation surges.
Bond yields decreased following last week’s JOLTS data, which indicated that job openings fell to 7.18 million, the lowest figure since 2021.
Meanwhile, here are a few key macro trends to monitor:
- Gold surged beyond $3,670 per ounce, reaching new all-time highs
- Silver dipped below $41 per ounce
- WTI crude remained above $63 per barrel amid discussions of new sanctions against Russia.
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Bottom Line: Implications of CPI and PPI for BTC and Markets
The increasing supply of government debt, coupled with persistent inflation, has put pressure on bond buyer interest globally. According to Vanguard’s Roger Hallam: “It’s nearly an ideal storm of worries regarding fiscal policies becoming inflationary, possibly more global issuance, and insufficient buyer interest.”
Even if inflation is higher than anticipated, it may not prevent Fed rate cuts this month. Nonetheless, all this unfavorable economic data should raise concerns for the average middle-class American.
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Key Insights
- The Producer Price Index (PPI) report for August 2025 will be published on Wednesday, September 10, 2025, at 8:30 a.m. Eastern Time.
- Year-over-year CPI is anticipated to be +2.9%, an increase from +2.7% in July. Core CPI is estimated to be +3.1%, consistent with February figures.
The article PPI Report Time and CPI Data Could Determine September Fed Rate Cut was first published on 99Bitcoins.
