Fed seen on course for rate cuts after PPI data

Core Viewpoint - The Federal Reserve is expected to initiate a series of interest-rate cuts starting next week, continuing through the end of the year, following lower-than-expected producer price inflation data [1][2]. Group 1: Interest Rate Cuts - Traders are betting on a quarter-point reduction in interest rates at the upcoming Federal Reserve meeting, with expectations of similar cuts continuing until year-end [2]. - The pricing of futures contracts indicates a consensus among traders regarding the Fed's policy rate adjustments [2]. Group 2: Producer Price Index - The producer price index (PPI) rose by 2.6% in August year-over-year, a decrease from a 3.1% increase in July, suggesting easing inflationary pressures [2].