The possibility of the #Fed cutting US dollar interest rates up to 90%, then what?

Last week's economic headlines were dominated by US inflation data, which solidified the prevailing market sentiment from early July: the Federal Reserve is likely to implement interest rate cuts soon. This expectation is fueled by signs of a slowing US economy.

The released CPI figures align with this broader outlook. Inflation is undeniably cooling down:

•June's overall CPI climbed 3% year-over-year, undershooting forecasts of 3.1% and marking a decline from May's 3.3%.

•Core CPI inched down to 3.3% year-over-year from 3.4%.

These figures bolster the consensus that inflationary pressures are easing. The Fed's strategy of maintaining confidence in a downward inflation trajectory appears to be bearing fruit.

Market reaction was swift, with investors significantly increasing their bets on a September interest rate cut.