The U.S. August PPI was far below expectations, and the core PPI recorded the largest monthly decline in nearly a decade! Trump: There is no inflation, and Powell should immediately make large interest rate cuts.

U.S. August PPI data below expectations indicates inflation is under control, which has raised expectations for rate cuts by the U.S. Federal Reserve, causing Bitcoin and Ethereum to rise. (Background: U.S. August non-farm employment was 'far below expectations'! The market bets on the Fed for consecutive rate cuts, gold hits a historical high, Bitcoin fluctuates...) (Background information: Gold breaks through $3,600 new high 'experts say it will rise further', U.S. unemployment rate collapses, and rate cut hedging benefits Bitcoin?) The U.S. Bureau of Labor Statistics (BLS) released the August Producer Price Index (PPI) report on the evening of September 10, showing PPI data below expectations, indicating that U.S. inflation is still slowing down. Specifically, U.S. August PPI data shows: Overall PPI year-on-year: increased by 2.6%, lower than the market expectation of 3.3% and also lower than the previous value of 3.3%, indicating that the year-on-year rate of increase in producer prices is slowing down. Overall PPI month-on-month: decreased by 0.1%, not only lower than the expected increase of 0.3% but also significantly down from the previous value of 0.9%, marking a rare instance of negative growth recently. Core PPI year-on-year: increased by 2.8%, lower than the expected 3.5% and the previous value of 3.7%, indicating that underlying inflationary pressures are easing. Core PPI month-on-month: decreased by 0.1%, also lower than the expected 0.3% and the previous value of 0.9%, marking the largest monthly decline in the past 10 years. The slowdown in inflation boosts expectations for rate cuts. The August PPI data below expectations reflects a significant reduction in supply chain price pressures. Analysts point out that PPI, as a leading indicator of the Consumer Price Index (CPI), being significantly below expectations suggests that the CPI data for August, which is set to be released on September 11, may also fall short of market expectations. This provides greater space for the Federal Reserve to restart rate cuts at this month's FOMC meeting. In this regard, Adam Button, an analyst at the U.S. financial website InvestingLive, stated: The August PPI data below expectations is a strong signal indicating that inflation is cooling down, and the CPI report to be released on September 11 may likewise be below expectations. He also specifically pointed out that the core PPI month-on-month decline marks the largest in the past 10 years, highlighting a significant relief in inflationary pressures. If the CPI data is also significantly below expectations, the likelihood of the Federal Reserve cutting rates by 50 basis points will also increase significantly. Currently, according to the CME FedWatch tool, the market bets that the Fed will restart a 25 basis point cut this month at a probability of 89.8%, slightly down from before, but it is worth noting that this does not indicate an increase in the probability of the market betting on the Federal Reserve remaining on hold; instead, the market is starting to increase expectations for a one-time 50 basis point rate cut this month, with this probability rising from 7% a day earlier to 10.2%. Trump calls again: Powell must significantly lower interest rates. After the data was released, Trump, who has continuously emphasized the need for rate cuts in the U.S., tweeted again, stating that without inflation, the Federal Reserve should significantly lower interest rates: Just released: No inflation! 'It's too late,' rates must be significantly lowered immediately. Powell is a total disaster, completely clueless! Bitcoin and Ethereum pump. Affected by this news, Bitcoin immediately rose, breaking through $113,000, currently reported at $113,620, with a nearly 24-hour increase of 2.45%; Ethereum followed suit, currently reported at $4,383, with a nearly 24-hour increase of 2.26%. Related reports: The probability of the Federal Reserve cutting rates in September rises to 97.6%! The small non-farm ADP report is below expectations, U.S. Treasury yields hit a new low since May. Federal Reserve Board of Governors reveals 'high inflation but there is room for rate cuts', market bets on a 96.8% probability of a rate cut in September. A historical perspective: How did the Federal Reserve's rate cuts affect Bitcoin's short-term trend? <U.S. August PPI far below expectations, core PPI marks the largest monthly decline in nearly a decade! Trump: No inflation, Powell should immediately cut rates significantly> This article was first published on BlockTempo, the most influential blockchain news media.