#usppijump
Yesterday’s 0.5% US PPI jump signals that tariff costs are hitting the supply chain. Wholesale inflation crushed the 0.2% forecast, reviving the "sticky inflation" narrative.
This matters because it limits the Fed’s ability to pivot toward rate cuts. Markets reacted with a dollar surge and a sharp risk-off rotation in crypto.
High producer costs usually force a squeeze on corporate margins or consumer prices.The risk is a sustained yield rally that drains liquidity from speculative assets.
Watch for the PCE data next to confirm if this producer heat reaches the consumer.