Dollar News (USD)

According to forecasts by experts surveyed by Investopedia, the US core Personal Consumption Expenditures (PCE) price index, excluding food and energy, is expected to have risen by 0.1% month-over-month in May. The annual rate is anticipated at 2.6%, slightly above April’s 2.5%.

According to JPMorgan's forecasts, US GDP growth will be 1.3% in 2025. This is lower than the bank's estimates, published at the start of the year. As it was noted by the bank's experts, the economy of the United States will come under pressure from Donald Trump's import tariffs.

The greenback dropped as expectations grew of sooner monetary easing in the US. The Bloomberg dollar index fell 0.2% to a record low since April 2022.

According to White House chief economist Stephen Miran, President Donald Trump's policies will reduce the US budget deficit by up $11 trillion over the next ten years.

Traders are boosting bets on a decline in the yield on 10-year US Treasury bonds, expecting them to drop to four percent. Total bets have exceeded $38 million of worth over the past two days.

During congressional hearings, Federal Reserve Chair Jerome Powell did not provide a specific timeline for potential interest rate cuts. He stated that, given the resilience of the US economy, there is no need to rush into such a decision.

BofA economists have shared two possible directions for the Fed's monetary policy in 2025. They believe that in case of a significant weakening of the US economy, which could happen before the end of the summer, the central bank could move to reducing borrowing costs by 75 basis points.

Federal Reserve Governor Michael Barr aligns with Chair Jerome Powell’s concerns about inflation, anticipating that it could accelerate due to Donald Trump’s proposed import tariffs.

As the 90-day pause on US tariff increases for European imports nears its end, markets are paying more attention to the issue. The parties continue to negotiate, but if the US introduces additional duties against the EU, the region is likely to take retaliatory measures, Bloomberg reports.

US consumer confidence declined in June, underscoring Americans' concerns about the impact of tariffs on the country's economy and labor market. The Conference Board’s gauge dipped 5.4 points to 93.