The latest US inflation data has just been released, showing a new decline — possibly giving the Federal Reserve a green light to cut interest rates if conditions allow.
- Headline CPI (YoY): 2.4% (vs. expected 2.5%), but higher than the previous reading
- Headline CPI (MoM): 0.1% (vs. expected 0.2%)
- Core CPI (ex. food & energy YoY): 2.8% (vs. expected 2.9%)
- Core CPI (MoM): 0.1% (vs. expected 0.3%)
These positive figures have increased expectations for a September rate cut by the Fed. Traders are now pricing in two rate cuts in 2025.
Market Reaction:
- US Dollar Index dropped to 98.695 📉
- Gold Futures rose 0.38% to $2,354.06/oz
- Gold Bullion surged 0.95% to $2,354.24/oz
- Wall Street Futures turned green:
- Dow Jones up 92 pts (+0.25%)
- S&P 500 up 0.36%
- Nasdaq up 0.45%
Conclusion:
The lower-than-expected inflation numbers increase the likelihood of monetary easing, which is already energizing markets and investors alike.
