Hotter-Than-Expected Inflation Report Forces Wall Street and Fed to Revisit Whether Price Fight Is Won

A hotter-than-expected wholesale inflation report released Friday is forcing Wall Street, the Federal Reserve, and the White House to revisit a question many hoped was settled: is the inflation fight really over? The data showed producer prices rising faster than economists projected, casting doubt on the trajectory of interest rate cuts that had sent mortgage rates below 6% for the first time since 2022 and sparked optimism about a housing market recovery. The report arrives at a precarious moment for the U.S. economy — caught between the deflationary effects of the Supreme Court's tariff ruling and the inflationary pressures of the administration's new 15% global levy imposed under alternative legal authorities. Analysts warn the data could delay further Fed rate cuts and prolong the squeeze on American consumers who were just beginning to feel relief from three years of elevated prices.