Dollar weakens as data supports Fed rate cut

Planet Daily News: The possibility of the Federal Reserve cutting interest rates is increasing, limiting the US dollar. As Trump readjusts the United States' geopolitical leadership position and pushes his aggressive tariff agenda, the dollar has been under pressure. Most importantly, data shows that inflation is slowing down and the job market is cooling, increasing the likelihood of the Federal Reserve cutting interest rates in early autumn or even earlier. After obtaining the May PPI report, economists can more accurately predict the data of the inflation indicator favored by the Federal Reserve. Most analysts making predictions expect that the core PCE in May will increase by 0.1% to 0.2% month-on-month, which is basically consistent with the Federal Reserve's 2% annual inflation target. Due to the base effect of data in the past few months, the PCE year-on-year rate may rise from 2.5% in April to 2.6%. Panson macroeconomists believe that good news will not last long, and they expect that as inventory decreases, tariffs may force retailers to raise prices in the coming months. (Jintian)