Thursday's hotter-than-expected PPI report hasn't moved the needle much when it comes to traders' expectations for a September Fed rate cut. Fed funds futures were pricing in more than 96% probability of a Fed rate cut in September,

US Treasury Secretary Scott Bessent said he isn’t calling for a series of interest-rate cuts from the Federal Reserve, just pointing out that models suggest a “neutral” rate would be about 1.5 percentage points lower.

Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.