Amid the Federal Reserve’s outsized interest rate hikes and elevated inflation, the Bureau of Labor Statistics reported that PPI for final demand rose 0.3% for November, while prices for final demand services advanced 0.4%. The measure shows price pressures cooled off but are still at an alarmingly high level.
The Fed officials have said borrowing costs will need to remain restrictive for some time. Federal Reserve Chairman Jerome Powell earlier said, “Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation and the length of time it will be necessary to hold policy at a restrictive level.”
