NEXT UP-Surprise PPI dip not necessarily CPI prelude

Newswire

By Kevin Plumberg

NEW YORK, Aug 15 (Reuters) - The celebration among U.S. stock and bond bulls on Tuesday that the Federal Reserve has put the inflation genie back in its bottle may be a bit premature.

Investors cheered the first drop in core wholesale prices since October as evidence the Fed correctly predicted that slowing economic growth will tame inflation, and their optimism put blue-chip shares on pace for their biggest gain in more than two weeks.

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