On January 15th, , according to foreign media analysis, the dollar has pumped about 4% from September 2024 to the present, effectively tightening the monetary environment. The prospect of inflation may not have taken into account the recent strength of the dollar. The current annual US CPI is 2.7%, gradually approaching the Fed’s 2% target. Traders may increasingly view the dollar as a safe-haven bet, and a strong dollar may result in US CPI falling below the target in 2025.
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Market Analysis: Strong US dollar may cause US CPI to be below target in 2025
On January 15th, , according to foreign media analysis, the dollar has pumped about 4% from September 2024 to the present, effectively tightening the monetary environment. The prospect of inflation may not have taken into account the recent strength of the dollar. The current annual US CPI is 2.7%, gradually approaching the Fed’s 2% target. Traders may increasingly view the dollar as a safe-haven bet, and a strong dollar may result in US CPI falling below the target in 2025.