US stock indices edged higher on Tuesday after stronger-than-expected producer prices inflation and Federal Reserve Chair Jerome Powell downplayed potential for a rate hike despite higher price pressures.
A report showed that US producer prices (Producer Price Index) rose more than expected in April amid strong gains in the costs of services and goods.
Another key inflation data — Consumer Price Index (CPI) – is due on Wednesday.
Speaking at a banking event in Amsterdam, Federal Reserve Chair Jerome Powell said that the central bank is unlikely to raise its key interest rate in response to signs of stubborn inflation.
He also stressed that the Fed’s preferred approach was to keep its benchmark rate at its current two-decade high rather than increase it.
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