As April's Producer Price Index (PPI) came in higher than expected, Jefferies Senior US Economist Thomas Simons joins The Morning Brief to break down the PPI...
As April's Producer Price Index came in higher than expected, Jefferies Senior US Economist Thomas Simons joins The Morning Brief to break down the PPI print and what it signals for the Fed.
Thomas if we, if we continue to see a higher than expected prints come in for CP I, what does that do for the fed's calculus?Yeah, I mean, that would be consistent with our view. Talk to us a little bit more about the relationship between CP I and PP I and how much PP I is really an early indicator, a leading indicator of maybe what we could see tomorrow morning.So, I mean, the, you know, getting a little bit inside baseball, I suppose the PP I and the CP I are um I guess a little bit sort of less related than they used to be in the past because of some methodology changes that went through with the PPI a few years ago.
But to the extent that we see the, you know, continued price pressure here earlier on in the supply chain suggests that we're further away from seeing more relief for the consumer.Uh I know you're an economist, you're probably not tracking some of these earnings reports that come out at the same degree that we're discussing them on a daily basis.
Yeah, I mean, you know, uh I would, I would agree that as an economist, I'm probably one of the worst persons to be uh you know, sort of thinking about the single names and stocks and, and, you know, kind of analyzing the, the individual businesses. Uh, so, you know, II, I think that we're going to continue to see that, you know, we're, we're going to see more trade down activity, uh, and more, uh, you know, kind of indications that sort of middle of the range consumers are probably squeezed a little bit and having to make some more difficult choices in terms of what they're spending their money on.Ok.
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