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In April, the "terrifying data" from the USA slightly exceeded expectations, and the PPI unexpectedly cooled down.
Retail sales in the USA maintained growth in the month impacted by Trump's tariffs, but there was a clear slowdown, which may raise questions about the intensity and stability of consumer spending in the coming months.
Is the dollar "losing its appeal" in real time? Trump's "weak dollar dream" may ignite gold prices!
In recent months, the inverse relationship between Gold and the USA remains "extremely strong", despite Bessemer attempting to assure that the USA is not seeking a weak dollar, Analysts point out that Trump's trade vision leans more towards a "weak dollar".
U.S. stocks closed | Data strengthens rate cut expectations, S&P rises for four consecutive days; Chinese concept stocks showed mixed trends, Alibaba dropped over 7% after earnings, while NetEase soared over 14%.
Meta fell over 2%, marking its first drop this week along with NVIDIA and Tesla; Cisco rose nearly 5%, leading the Dow's rebound; UnitedHealth dropped nearly 11%.
The "New Federal Reserve News Agency" reports that the Federal Reserve will adjust its framework for interest rate setting, acknowledging that the era of long-term low interest rates may have come to an end.
The Federal Reserve's review is a reflection on the shortcomings of the 2020 framework—especially its failure to adapt to a range of widespread economic scenarios, even if those scenarios initially seemed unlikely to occur. This review is expected to retain the core principles of the Federal Reserve's framework, including the 2% inflation target and ensuring public confidence that the Federal Reserve will maintain low and stable inflation as a key mission.
CICC: Delay in the forecast for the Federal Reserve's interest rate cuts to the fourth quarter.
After the Geneva talks between China and the USA, both sides significantly reduced tariffs, lowering the risk of an economic recession in the USA. However, the effective tax rate of 15.5% is still a significant increase from last year's 2.4%, indicating that the inflation risk has not been completely alleviated.
Weak economic data drives the rise in U.S. bonds as the market bets on two interest rate cuts by the Federal Reserve within the year.
As economic data shows a weakening in economic activity and a cooling in inflation, it supports the expectation that the Federal Reserve will implement two rate cuts this year, leading to an increase in US Treasury bond prices.