Yangtze River Macro comments on U.S. inflation data: welcome the return of confidence in interest rate cuts The Federal Reserve is expected to start cutting interest rates in the second half of the year

Sina Financial News Changjiang Securities Research Report said that in April, the overall inflation and core inflation in the United States both declined, significantly alleviating the market’s concerns about “stagflation” in the United States. The improvement in inflation data in April is still not enough to have a decisive impact on the June FOMC decision, but combined with the weaker non-farm payrolls data in April, the Fed’s confidence in cutting interest rates may have been encouraged to a certain extent, and the Fed is expected to start cutting interest rates in the second half of the year as inflation steadily falls and the supply and demand pattern of the labor market continues to improve. It also means that the rate-cutting trade may return to its home turf: 1) the dollar weakens; 2) U.S. Treasury Intrerest Rate continues to fall; 3) The easing pressure of domestic coins may be significantly reduced.