PPI data lowers market odds of interest rate increases this year

Federal Reserve chairman Kevin Warsh is testifying on Capitol Hill for the second day Wednesday, this time before the Senate Banking Committee. The combination of a few comments he made in Tuesday's hearing before the House and good June inflation data now in hand suggests a rate increase is unlikely at the Fed's meeting in two weeks, while its policy stance the remainder of the year is quite uncertain. Driving the news: The Labor Department on Wednesday morning released a favorable Producer…