Equities pulled back again on Tuesday following another round of hotter than expected inflation data. The PPI came in at 0.8% for the month, up 0.2% from October and 0.3% hotter than forecast. The figure is coupled with high core readings and the hottest YOY increases on record.

If there was any doubt the FOMC would be raising interest rates sooner than expected this news should lay those doubts to rest. The CME Fedwatch tool is pricing in a near 60% chance the first hike will come by May and a 70% chance for two .25% interest rate hikes by June so today?s FOMC meeting is more important than ever. The Fed is expected to accelerate the taper and move the timeline for rate hikes forward.