United States December PPI Data Brief:

• Data Performance is Mild:

According to data released by the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) in December rose by 0.2% month-on-month, lower than the market expectation of 0.3%. The year-on-year increase rose from 3.0% in November to 3.3%, reflecting the impact of a lower price base from last year, especially the retreat in energy prices.

• Market Expectations and Federal Reserve Policy:

• Although the PPI data is mild, a strong job market may lead the Federal Reserve to maintain the current interest rate policy before the second half of this year, without rushing to further cut rates.

• Diverging Views on Wall Street:

• Bank of America believes that the Federal Reserve's easing cycle has ended.

• Goldman Sachs predicts that there will be one rate cut each in June and December this year (previously expected to be three times).

• Market Impact:

• Mild PPI data may alleviate market concerns about inflation in the short term, but the strength of the job market will continue to provide the Federal Reserve with reasons to tighten policy.

• Investors should pay attention to future inflation and employment data performance to assess the actual direction of Federal Reserve monetary policy.