In the U.S., consumer inflation data for April showed a slower-than-expected increase, reinforcing market expectations for potential interest rate cuts by the Federal Reserve. The consumer price index (CPI) rose by 0.3% in April, down from 0.4% in March, and the year-on-year increase slowed to 3.4%. This data, coupled with flat retail sales, suggests cooling domestic demand, which is a positive sign for those anticipating rate cuts.
Traders now expect the Fed to cut rates twice this year, likely starting in November
Traders now expect the Fed to cut rates twice this year, likely starting in November