Analyst: If CPI data is also weaker than expected, the likelihood of the Federal Reserve cutting interest rates by 50 basis points will increase

ChainCatcher news, according to Jinshi reports, analyst Adam Button stated that the Consumer Price Index (CPI) report will be released tomorrow, which could be a strong signal indicating that the data may come in below expectations. U.S. stock index futures have risen as a result.

If the CPI results are below expectations, especially in the case of a significant miss, the likelihood of the Federal Reserve cutting rates by 50 basis points will increase. The month-on-month decline in the Producer Price Index (PPI) excluding food and energy has reached the largest drop in the past 10 years.