"New release: No inflation!!! 'Too late' – cut INTEREST RATES, BIG, NOW. Powell is a total disaster, with no clue!!!" Trump wrote.
The U.S. Producer Price Index for final demand unexpectedly dropped by 0.1% in August, according to the U.S. Bureau of Labor Statistics. This decline followed a downward revision to a 0.7% increase in July. Economists had forecasted a 0.3% increase in PPI.
The decrease was primarily driven by a 0.2% drop in services prices, which had previously risen by 0.7% in July. Goods prices saw a modest increase of 0.1%, following a 0.6% rise in the previous month.
On a year-over-year basis, the PPI increased by 2.6% through August, down from 3.1% in July.
While Trump has called for a significant rate cut and the PPI data came in lower than expected, investors still anticipate the Federal Open Market Committee (FOMC) will only reduce rates by 0.25% at next week's meeting. The PPI data was released one day before the Consumer Price Index (CPI) report, which is considered a key inflation indicator.