Producer Price Inflation Data and Other Financial Highlights
The Producer Price Index (PPI) for June revealed that wholesale prices were flat, contrary to the expected 0.2% increase, alongside Core PPI, which also failed to meet forecasts. This data suggests that tariffs have not yet reignited inflation, complicating the Federal Reserve’s interest rate strategy as Jerome Powell faces mounting pressure. The next Federal Open Market Committee (FOMC) meeting will occur on July 29, 2023.
In financial trading news, subscribers to Jonathan Rose’s Advanced Notice service saw about 700% returns from a trade involving MP Materials (MP) after a $400 million Pentagon investment drove stock prices 51% higher in one day. Following this development, Apple announced a $500 million investment, further boosting MP’s value.
Additionally, discussions are underway regarding a potential change in leadership at the Federal Reserve, with President Trump indicating a possible dismissal of Powell, although he later deemed it “highly unlikely”. This ongoing drama reflects Trump’s dissatisfaction with current monetary policies affecting interest-sensitive sectors.
