As April's Producer Price Index (PPI) came in higher than expected, Jefferies Senior US Economist Thomas Simons joins The Morning Brief to break down the PPI print and what it signals for the Fed.

Simons explains that this report "suggests that there is still some pretty significant inflation pressure that is going to be passed along."

He says that the Fed may not cut rates before November or December if the Consumer Price Index (CPI), which is expected Wednesday, also comes in higher than expected. "And at this pace, possibly not even this year at all," Simons adds.

"The inflation data continues to show that there is risk that if the Fed were to cut rates, that they could risk stoking the inflation pressures even a little bit more and potentially sending inflation to higher levels that are really uncomfortable relative to their 2% goal," Simons tells Brad Smith and Seana Smith.

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This post was written by Melanie Riehl