Global markets observed a mixed trend following the higher-than-expected inflation data in the US and statements by Fed Chairman Jerome Powell. Investors are looking to follow the US producer prices today. Amid the higher-than-expected inflation data in the US and the announcements by the Federal Reserve (Fed) Chairman Jerome Powell, there is uncertainty in the global markets, while attention is now turned to the Producer Prices Index (PPI) to be announced in the US today. The data pointing to an acceleration in price increases in the US strengthens forecasts that the Fed will continue to take a cautious approach to interest rate cuts while making asset pricing more challenging. GAZES ON US PRODUCER PRICES In the country, the Consumer Price Index (CPI) increased by 0.5% on a monthly basis in January and by 3% on an annual basis, exceeding expectations. CPI recorded its fastest increase since August 2023 on a monthly basis and saw the highest inflation since July 2024 on an annual basis. Core inflation, which does not include volatile energy and food prices, was announced to be 0.4% monthly and 3.3% annually, exceeding expectations. Analysts stated that the inflation data exceeding expectations underlined concerns that President Donald Trump’s policies could disrupt the Fed’s inflation-fighting process. It was noted that signals from the producer inflation to be announced today could have an impact on the direction of the markets. POWELL: WE HAVEN’T REACHED THE TARGET YET Meanwhile, Fed Chair Powell, on the second day of his presentation in Congress, stated that they were close to the inflation target but had not yet reached it, emphasizing that the published inflation data also said the same. In response to a question about President Donald Trump’s statement that interest rates need to be lowered, Powell emphasized that they will make decisions based on what is happening in the economy. Powell stated that they wanted to keep the monetary policy restrictive for now. Powell, who stated that something might need to be done about the policy interest rate due to tariffs, said, “However, we cannot know how this will happen until we see which policies actually go into effect.” While the statements of Fed officials are also being monitored, Chicago Fed President Austan Goolsbee described the latest inflation data as “encouraging.” Goolsbee stated that if such data continues for a few more months, it would mean that the Fed’s job is not done. TRUMP’S TARIFFS ARE EXPECTED White House spokesperson Karoline Leavitt stated that President Donald Trump could announce tariffs based on reciprocity before his meeting with Indian Prime Minister Narendra Modi today. Following these developments, Fed’s pricing indicating that the first interest rate cut of the year will take place in July is at the forefront. DOLLAR AND OIL RETREATED, GOLD NEAR RECORD After the inflation data, the 10-year US Treasury bond yield reached 4.66% in the US, and is currently balancing at 4.61%. The dollar index is at 107.6 with a 0.3% decrease. While the price of an ounce of gold closed at $2901 yesterday, it is trading at $2922 with a 0.7% increase today. The barrel price of Brent oil is being sold at $74.3, 0.8% below the previous closing. In the New York Stock Exchange yesterday, the S&P 500 index decreased by 0.27%, the Dow Jones index by 0.50%, while the Nasdaq index remained unchanged. Index futures in the US started the new day with a positive trend.