US EditionDollar Dips Amid Fed Rate Cut Speculation and Geopolitical Talks
July's Producer Price Index rose 0.9%, the largest monthly gain since June 2022, prompting traders to cut Federal Reserve rate-cut expectations for September, with odds falling to 85%.
- After PPI surged 0.9% in July, U.S. Treasuries fell and yields increased as traders pared bets on a Fed rate cut, sending the two-year yield to 3.73%.
- Before the PPI data, traders had piled into bets on a 50-basis-point September rate cut after benign CPI readings and remarks from Treasury Secretary Scott Bessent about lowering borrowing costs by up to 1.5 percentage points.
- The PPI report showed producer prices surged 0.9% in July, the largest since June 2022, with services costs increased 1.1%.
- Markets adjusted rate-cut probabilities as interest-rate swaps signalled the odds of a September 50 basis point cut fell to around 85 from over 100.
- Ahead of the Sep 16–17 meeting, Fed officials are weighing mixed signals, and investors watch Jackson Hole where Jerome Powell will speak later this month.
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Dollar Dips Amid Fed Rate Cut Speculation and Geopolitical Talks
Dollar Dips Amid Fed Rate Cut Speculation and Geopolitical Talks The dollar took a hit by the week's end, trading lower on Friday as anticipation grows for a potential Federal Reserve interest rate cut in September. Despite Thursday's rise fueled by unexpectedly strong U.S. producer prices, the dollar was still projected to close the week down 0.4% against major currencies.Market experts remain firm on their predictions for a rate cut, with the …
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Total News Sources22
Leaning Left2Leaning Right2Center2Last UpdatedBias Distribution33% Left, 33% Center, 33% Right
Bias Distribution
- 33% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
33% Right
L 33%
C 33%
R 33%
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