U.S. Retail Sales Data Influences Federal Reserve Rate Expectations

According to Odaily, analysts from the financial website Forexlive have noted a slight shift in market expectations for a Federal Reserve rate cut by the end of the year. Prior to the release of U.S. retail sales data for May, the market had priced in a 49 basis point cut. Following the data release, this expectation adjusted slightly to 48.5 basis points. The Federal Open Market Committee (FOMC) meeting is set to begin on Tuesday, with a decision expected on Wednesday. The retail sales data will be one of the key points of discussion during the meeting. While the overall report showed weak performance, the control group, considered the best indicator of consumer conditions, performed slightly better than anticipated. Additionally, previous figures were revised upwards. Overall, the data series presents a challenge for interpretation. March saw a significant increase in sales due to tariff concerns, followed by declines in the subsequent two months.