PETALING JAYA: Economists believe that the likelihood of another couple of rate cuts by the US Federal Reserve (Fed) in the second half of 2025 (2H25) has grown stronger following May’s producer price index (PPI) and initial jobless claims data, but how this would affect Malaysia is still uncertain, as there could be more influential factors at play.
The PPI measures the average change over time in the selling prices received by domestic producers for their goods and services – the country in question in this case being the United States – while the initial jobless claims refer to the number of people who have filed for unemployment benefits for the first time during a specific week.
