Federal Reserve Swaps Steady After PPI Data, 100 Basis Points Cuts Expected

Federal Reserve swaps remained steady following the release of the Producer Price Index (PPI) data for August, according to Bloomberg. The PPI showed a rise of 0.2% month-over-month, slightly above the estimated 0.1%. Year-over-year, the PPI increased by 1.7%, in line with expectations. Excluding food and energy, the PPI rose by 0.3% month-over-month, higher than the estimated 0.2%, and by 2.4% year-over-year, matching estimates. Market expectations indicate that the Federal Reserve will implement rate cuts totaling 100 basis points by the end of the year.