In the Asian session on Friday (May 12), the latest price of the U.S. dollar index was 102.05, and the opening price was 102.18. The U.S. PPI annual rate fell in April, increasing the reason for the Fed to pause interest rate hikes.
Andrew Patterson said the Fed has been trying to curb inflation for more than a year, aggressively raising interest rates at the fastest pace in decades. They’ve seen some gains in inflation as the housing market has cooled, and energy prices have come down. In a marked shift in attitude, the Fed stopped short of saying it “expects” further rate hikes to be needed, instead saying it would watch incoming data to determine whether further rate hikes “may be appropriate.” According to Zerohedge analysis, the trend of PPI and CPI now shows signs of slowing inflation, which gives the Fed more room to pause or cut interest rates.
