Hedge Fund insiders: The dollar is going to plummet; market confidence in the dollar has already become "irreversibly shaken."
Jens Nordvig, founder of Global Capital Trend tracking company Exante Data, stated that institutional investors who have purchased trillions of dollars in Stocks and Bonds over the past decade are still in the process of rebalancing their portfolios, which could trigger a massive dollar sell-off in the coming months. The dollar is facing a long-term structural transformation, and it is advisable to prepare for a rise in the euro and Gold.
Why hasn't the Federal Reserve lowered interest rates despite the stagnation in price increases?
The milder-than-expected inflation data and the significant easing of the China-US trade war are alleviating market concerns about severe impacts on American households and businesses in the coming months.
Schroder Investment: Short-term severe sell-off of U.S. bonds, medium and long-term layout opportunities emerge.
Wu Meiyan, the Director of Fixed Income Investments at Schroders, stated that the sharp sell-off in the short-term US Treasury market, while reflecting market sentiment, often contains opportunities for long-term investors.
The brief "springtime" for the dollar cannot withstand the long "bearish path"! Hedge funds warn that tariff policies will trigger a wave of dollar selling.
The founder of Exante Data believes that the recent rebound of the dollar is just a fleeting moment, and the long-lasting "dollar bear market" has only just begun, mainly due to a series of chaotic tariff policies aimed at Global trade introduced by the Trump administration to reshape the USA economy and trade.
What is the market saying? While the Nasdaq is soaring, U.S. Treasury yields are approaching their highs, and the dollar is falling.
The analysis suggests that the rebound in the US stock market may only be a superficial celebration. The abnormal rise in US bond yields and the divergence from the dollar's trend point to structural fiscal issues in the USA, or imply a deeper risk of dollar collapse. With the USA government expected to issue over 2 trillion dollars in national debt, the lack of buyers may force the Federal Reserve to resume expanding its balance sheet.
Peter Schiff Says Trade Truce Aside, The World Is 'Losing Confidence' In Dollar And In US Ability To Put 'Fiscal House In Order'
US Inflation Likely To Pick Up As Tariffs Boost Cost Of Goods: MIDF
Incredible! Did every "big day" of data from the USA this month undermine the Federal Reserve's expectations of a rate cut?
Since this month, a rather rare phenomenon has emerged in the USA interest rate market, where almost every "big day" for economic data releases (including Federal Reserve decision days) has negatively impacted expectations for a Fed rate cut. If this trend continues, the next window for a rate cut may soon be pushed back to December.
Trump urges for interest rate cuts again, but the 'New Federal Reserve News Agency' dampens expectations: the April CPI did not reflect the impact of tariffs, and inflation pressure will emerge afterwards.
According to Timiraos, economists believe that tariffs will end the recent inflationary lull and drive up prices in the coming months; the tariff policy is like a "roller coaster," with April's inflation providing almost no reason for the Federal Reserve to stop watching; if there are no extensive tariffs in April, this data might be enough to prompt the Fed to resume rate cuts, while costs may rise in the coming months, possibly leading the Fed to remain inactive.
After the CPI reported good news, Trump called out again: the Federal Reserve should lower interest rates quickly, do not block the USA's rise.
① After the inflation report was released, USA President Trump once again pressured Federal Reserve Chairman Powell, demanding that the central bank take action to lower interest rates; ② Trump imposed a 10% baseline tariff on nearly all countries and implemented or threatened additional tariffs on key industries, raising concerns about rising costs for USA consumers and economic slowdown.
QE Doesn't Cause Inflation—Here's What Really Does
Monthly Inflation Ticked Up in Early Hints of Tariff Effects -- 7th Update
'Worrying Signs' Spotted in CPI Report -- Market Talk
Daily Roundup of Key US Economic Data for May 13
Inflation Slows to 2.3%; Stocks Mostly Rise -- WSJ
Tariffs Paused, But Not Gone: Economist Says Inflation Risks Remain
Inflation Expected to Pick Up as Trade Policy Evolves -- Market Talk
Inflation Is Creeping Into the Labor Market. Tariffs Are a Worry. -- Barrons.com
US Consumer Prices Rise Marginally; Impact of Tariffs Awaited
Fed's Preferred Core Inflation Gauge Seen Steady in April -- Market Talk