Dollar weakens as data supports Fed rate cut

Odaily Planet Daily News The increasing likelihood of a Fed rate cut has constrained the dollar. The dollar has come under pressure as Trump recalibrates the United States' geopolitical leadership and pushes forward his aggressive tariff agenda. Most importantly, data showed slowing inflation and a slowing job market, increasing the likelihood that the Fed will cut interest rates in early fall or even earlier. After getting the May PPI report, economists will be able to accurately predict the data of the Fed's preferred inflation indicator. Most analysts who made forecasts expect core PCE to rise 0.1% to 0.2% month-on-month in May, a mild figure that is roughly consistent with the Fed's 2% annualized inflation target. Due to the base effect of data in the past few months, the annual PCE rate may rise to 2.6% from 2.5% in April. Pansen macroeconomists believe that the good news will not last long, and they expect that tariffs may force retailers to raise prices in the coming months as inventories decrease. (Jinshi)