Investors are looking ahead to a big week, with consumer inflation data coming out on Tuesday and the Fed’s policy decision due on Wednesday.
US stocks fell Friday after wholesale inflation rose more than expected last month, raising concerns that the Federal Reserve will keep rates higher for longer.
The producer price index rose 0.3% in November from the prior month, exceeding expectations of 0.2%. That sets up markets for next week, with consumer inflation data coming out on Tuesday and the Fed’s policy decision due on Wednesday.
While the central bank is widely expected to slow down the pace of its rate hikes as inflation comes off its highs, signs of sticky prices could push back the timeline for an eventual Fed pivot toward lower rates.
