US EditionInvestors Double Down on September Fed Cut After CPI
Rick Rieder cites softer inflation and labor market slowdown as reasons for a 50 basis point Federal Reserve rate cut in September, with markets pricing in an 86% chance of easing.
- After the CPI release on Tuesday, the Bloomberg Dollar Spot Index fell 0.4%, with the probability of a September rate cut rising to 98, traders say.
- Amid labor market weakness, Rick Rieder flagged a half-point Fed cut after July's jobs report signaled a slowdown.
- Emerging market investors have flocked to carry trade strategies, boosting demand for the Turkish lira, Brazilian real, and South African rand, with Bloomberg’s basket staying above 10% in August.
- Following the market shift, global funds dedicated to emerging market debt attracted $1.7 billion in the week ending August 6.
- Amid policy shifts, the Central Bank of the Republic of Türkiye raised reserve requirements in May, and Morgan Stanley warned of volatility from crowded lira positions.
11 Articles
11 Articles
Stocks Hit Record as CPI Fuels Bets Fed Will Cut: Markets Wrap
(Bloomberg) -- Calm prevailed across Wall Street as an in-line inflation reading bolstered speculation the Federal Reserve will have room to cut rates in September, driving stocks higher and short-dated bond yields lower.
Why these two Fed officials are cool to the idea of a September rate cut
Overall, investors see a September rate cut as likely after the latest CPI report, and the Trump administration argues that the data show tariffs are not boosting inflation as feared. Article Attribution | Read More at Article Source The post Why these two Fed officials are cool to the idea of a September rate cut appeared first on RocketNews.
The day is an empty agenda in the macroeconomic scenario, and the market sense is still driven by the inflation data that were published yesterday
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