U.S. Producer Prices Rise the Most on Record

The video discusses the March Producer Price Index (PPI) data, highlighting a stronger than expected increase, indicating persistent inflation. The discussion covers the implications of this data on the inflationary cycle and the Federal Reserve's potential actions. Market reactions to the PPI data are analyzed, with a focus on historical comparisons. Additionally, trends in mortgage applications and interest rates are explored, noting a shift towards adjustable-rate mortgages as rates rise.

What was the unexpected gain in the Producer Price Index (PPI) for March?

• 1.1%

• 1.4%

• 0.99%

• 2.3%

How did the core rate, excluding food and energy, change on a year-over-year basis?

• 8.4%

• 9.2%

• 10.6%

• 11.2%

What is the significance of the PPI data in the context of inflationary cycles?

• It indicates a deflationary trend.

• It suggests a stable economic environment.

• It shows a decrease in market volatility.

• It contributes to the belief in an ongoing inflationary cycle.

What was the market's reaction to the PPI final demand number?

• A significant drop in yields

• A slight increase in yields

• A massive reaction in S&P futures

• No change in market dynamics

Why are more people switching to adjustable-rate mortgages?

• They are unaffected by Federal Reserve rate changes.

• They are currently about a percentage point cheaper than fixed-rate mortgages.

• They are more expensive than fixed-rate mortgages.

• They offer a fixed interest rate for the entire term.