RMB Midpoint Declines 34 Points to 7.1371, US July PPI Data Surprises, FOMC Rate Cut Expectations Dashed

August 15, the RMB midpoint declined to 7.1371, down 34 points.

FOMC Rate Cut Expectations Dashed

The latest US July PPI data released by the Bureau of Labor Statistics has sparked concerns about inflation, adding uncertainty to FOMC rate cut expectations. The data showed that US July PPI rose 0.9% month-on-month, far exceeding market expectations and the largest increase since June 2022. Following the release of the data, traders reduced their bets on a September rate cut and abandoned their expectation of a 50-basis-point rate cut.

FOMC officials' latest remarks have also dashed hopes for a rate cut. For example, San Francisco Fed Chairman Daly explicitly stated that he opposes a large-scale 50-basis-point rate cut at the September FOMC meeting. Similarly, St. Louis Fed Chairman Murchison emphasized that a 50-basis-point rate cut is not in line with current economic conditions or data.

Source: Sina News