Trump casts a "bigger net" for Powell's successor, inflation data boosts Fed's bet on interest rate cuts, gold remains stable around 3350

Basic news

On Wednesday (August 13, Beijing time), spot gold trading was around $3,350/ounce, and gold prices rose slightly on Tuesday. After U.S. inflation data maintained Fed rate cut expectations, people's attention turned to other key economic data to be released this week; U.S. crude oil trading was around $63.12/barrel, oil prices fell on Tuesday, traders awaited the U.S. Energy Information Administration's inventory report and began to pay attention to signs of possible decline in demand at the end of the summer driving season in early September.

Stock and Nasdaq Index hit record closing highs on Tuesday as news said inflation gains in July were basically in line with expectations, which strengthened bets on the Fed's interest rate cut next month.

The U.S. Labor Department said the Consumer Price Index (CPI) rose 0.2% month-on-month in July, while annual inflation was slightly lower than expected, which triggered calls from U.S. President Donald Trump to lower interest rates.

The shorter-term Treasury yields reflecting interest rate expectations fell, with interest rate futures showing that traders believe the Fed may cut interest rates by about 25 basis points in September at 88.8%.

Katherine Bordlemay, co-head of portfolio management for basic equity clients at Goldman Sachs Asset Management, said: "The CPI data is supportive for the stock market as a whole, and has received some good news. The Fed looks more likely to cut interest rates in September, and there may be more transitional inflation. My first guiding idea is to continue to be optimistic about the theme of large xmtraders.companies growing bigger. We continue to have confidence in giant technology and technology."

AlpHabet shares rose 1.2% as Perplexity offered $34.5 billion in cash to acquire the xmtraders.company's Chrome browser. Intel climbed 5.6% after Trump said he met with CEO Tan Liwu on Monday and praised Chen Liwu, saying the meeting was "very interesting".

The Dow Jones Industrial Average rose 1.10% to 44458.61 points; the S&P 500 rose 1.13% to 6445.76 points; and the Nasdaq rose 1.39% to 21,681.90 points.

The quality of economic data remains a concern weeks after Trump fired the Bureau of Labor Statistics director as non-farm jobs were revised downward in the previous months. The market is paying attention to the dynamics of Trump's nominated Bureau of Labor Statistics Director E.J. Antoni and potential candidates for the Fed's top position. "It's still in the early stages of this process, and inflation data may begin to record some more direct tariff price increases, which will xmtraders.complicate the decision to cut interest rates," said John Velis, a macro strategist at NYCB. "The U.S. and China extended the tariff truce until November 10, avoiding heavy tariffs on each other's goods, which gave the market a sigh of relief. U.S. stocks have rebounded in recent weeks as tech stocks earnings, easing trade tensions and increased expectations for interest rate cuts.

Data from Bank of America Global Research shows that the largest amount of funds flowing into U.S. stocks last week were the largest in two years.

The Russell 2000, which tracks small xmtraders.companies, rose nearly 3%. The index tracking airline stocks rose 8.87%, the biggest single-day gain in more than a month, after data showed that air ticket prices rose 4% in July.

Bank stocks rose, with the S&P 500 rising 2.1% as analysts say a steeper yield curve will help banks make profits as banks can borrow at low prices and lend at higher interest rates.

CardinalHealth fell 7% after the drug distributor said it would acquire healthcare management xmtraders.company Solaris for $1.9 billion. Gold prices rose slightly on Tuesday, and after U.S. inflation data maintained Fed rate cut expectations, people's attention turned to other key economic data to be released this week. Spot gold was $3347.34 per ounce, up 0.1%.

The U.S. Consumer Price Index rose 0.2% last month after rising 0.3% in June. The Consumer Price Index rose 2.7% in the 12 months to July. Economists surveyed by Reuters expect CPI to rise by 0.2% month-on-month in July and 2.8% year-on-year.

RJO Futures market strategist Bob Haberkorn said: "Inflation data seems to be mixed, but supports rate cuts. TradersWe are cautious as we are at a critical moment, waiting for further economic indicators. "After the CPI data was released, traders maintained their bets on the U.S. interest rate cuts in September and December.

Other data to be released this week include U.S. producer price index, weekly unemployment claims and retail sales.

At the same time, the U.S. and China have extended the tariff truce by 90 days, avoiding heavy tariffs on each other's goods.

U.S. gold futures for December delivery closed down 0.2% lower at $3,399 per ounce. Gold prices fell more than 2% on Monday after U.S. President Trump said on social media that he would not impose tariffs on imported gold bars. Reports of Washington's tariffs on imported 1 kilograms of gold bars have hit a record high last Friday.

Spot silver rose 0.9% to an ounce of ounce.

The oil market fell 0.9% to $1,338.73; palladium fell 0.5% to $1,129.57.

Oil market

Oil prices fell on Tuesday, with traders awaiting U.S. Energy Information Administration (EIA) inventory reports and began to focus on signs of possible decline in demand at the end of the summer driving season in early September.

Brent crude futures settlement price was $66.12 per barrel, down 0.77%. U.S. crude futures settlement price was $63.17, down 1.24%.

Angain Capital partner John Kilduff said, “This is indeed a seasonal factor.” “The stock market has not brought us any boost, and the inflation report is also showing a positive trend, indicating a rate cut. ”

U.S. consumer prices rose in July, tariffs led to higher prices of imported goods, driving the biggest month-on-month increase in six months. Kilduff said diesel demand, which drives oil demand, appears to be softening.

Outlooks released by the Organization of Petroleum Exporting Countries (OPEC) and EIA noted that oil production will increase this year, but both are expected to decline in U.S. production in 2026, while oil and gas production in other parts of the world will increase.

OpEC's monthly report on Tuesday stated that global oil demand will increase by 1.38 million barrels per day in 2026, higher than previous forecasts 100,000 barrels per day. Its forecast for 2025 remains unchanged.

EIA predicted in its monthly report on Tuesday that as oil well productivity increases, U.S. crude oil production will reach a record 13.41 million barrels per day in 2025, but the decline in oil prices will lead to a decline in output in 2026.

China issued a joint statement on Tuesday on Stockholm Economic and Trade Talks, showing that China and the United States have once again suspended the imposition of 24% tariffs on each other's goods for 90 days from August 12, while retaining the remaining 10% tariffs on these goods.

Trump and Russian President Putin will meet in Alaska on Friday to end RussiaRoss' war in Ukraine may also put pressure on the oil market.

Foreign exchange market

The dollar fell across the board on Tuesday, after data showed that U.S. consumer prices rose moderately in July, retaining the possibility of the Fed's interest rate cut next month.

The U.S. Department of Labor Bureau of Labor Statistics said Tuesday that the consumer price index rose by 0.2% last month after rising 0.3% in June.

CPI rose 2.7% in the 12 months to July, xmtraders.compared with a 2.7% increase in June. Economists surveyed by Reuters expect CPI to rise 0.2% year-on-year in June and 2.8% month-on-month.

Corpay chief market strategist Karl Schamotta said, "Basic inflation remains sluggish, giving policymakers room to cope with initial signs of weakness in the labor market. The possibility of a September rate cut should be on the agenda when Chairman Powell spoke at Jackson Hall on the 21st."

The money market had been on the stand-by-side state as the market increasingly expected a moderate reading of U.S. price pressure could consolidate bets on the Fed's next month's rate cut, which increased after last week's weak employment data were released. "If the Fed cuts interest rates continuously, the policy rate spread with its peers could quickly narrow, putting pressure on the dollar against high-yield currencies," analyst Fawad Razaqzada said in a note. "The euro erased its earlier decline against the dollar, up 0.4% to $1.16,663. The dollar fell 0.3% against the yen to 147.74 yen.

Schamotta said that as the impact of tariffs on global economic growth is inconclusive, it is still challenging to predict the dollar's response by the end of the year. "The prospects for early autumn are still difficult to interpret, and evidence of a global slowdown can easily revive the dollar."

On Tuesday, former St. Louis Federal Reserve Chairman Brad said he would accept the position if the Fed chairman was given to him, which once again sparked speculation about the Fed's leadership change.

Brad told xmtraders.comBC that "if we can protect the value of the dollar, this will make our interest rates lower over time; if we target low and stable inflation, and (and) respect the institutional independence stipulated by the Federal Reserve Act," he would accept the position.

At the same time, the pound rose 0.5% against the dollar to $1.3495. Previous data showed that the UK job market was further weaker, with wage growth remaining strong despite slower speeds – the latter highlighting why the Bank of England is so cautious about rate cuts. These data should not lead to the Bank of England's rate cuts speed. The Bank of England cut interest rates by 5-4 only last week.

After the RBA cut interest rates by 25 basis points as expected, the Australian dollar began to fall. Central Bank Says Inflation Slowing and Labor MarketLoose, but cautious about the prospect of further loosening.

However, the general weakness of the dollar helped the Australian dollar recover lost ground against the dollar, up 0.3% to $0.653.

International News

Iran: If the conditions are appropriate, nuclear negotiations can be conducted with the United States directly

According to the Islamic Republic of Iran on the 12th, Iran's first Vice President Arev said in the capital Tehran that day that if the conditions are appropriate, Iran can conduct nuclear negotiations with the United States directly, but the US demands that Iran xmtraders.completely give up uranium enrichment activities is a "big joke."

Russian and US presidents will meet in Anchorage

On August 12, local time, the White House said that US President Trump and Russian President Putin will meet in Anchorage, the largest city in Alaska on August 15 local time.

OPEC raised its global oil demand forecast for 2026

The Organization of Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand growth in 2026 in its monthly oil market report released on the 12th, while maintaining the forecast for 2025 unchanged. The report said that in 2026, the global average daily oil demand will increase by about 1.38 million barrels xmtraders.compared with 2025, reaching 106.5 million barrels; in 2025, the global average daily oil demand will increase by 1.29 million barrels xmtraders.compared with last year, reaching 105.1 million barrels.

The U.S. Secretary of Labor Statistics, who was elected by Trump, once suggested stop issuing monthly employment data

EJ Antoni, director of Labor Statistics and economist of the Heritage Foundation, nominated by U.S. President Trump, had previously told Fox Business that the agency should suspend release of monthly employment reports. "Until the problem is corrected, the Bureau of Labor Statistics should suspend the release of monthly employment reports, but continue to release more accurate and less timely quarterly data," Antoni said. Fox Business's interview with Antoni was ahead of Trump's public nomination on Monday. Antoni has long criticized the Bureau of Labor Statistics.

The Trump administration is casting a "bigger net" to find a successor to the Federal Reserve Chairman

According to Politico, Trump administration officials are expanding the list of candidates to replace Federal Reserve Chairman Powell next year, looking for someone who can win both the president’s trust and the financial market. An administration official who asked not to be named revealed that candidates under consideration include: current Fed Vice Chairman Jefferson and Bowman; Dallas Fed President Logan; former St. Louis Fed President Brad and Macroeconomic Advisor Marc Sumerlin. The official said more candidates from the private sector might also be considered. The candidates will be added to the list that already includes White House National Economic xmtraders.commission Director Hassett, former Fed Director Wash and current Fed Director Waller. The list shows that officials aim to provide Trump with a diverse range of options to replace Powell.

India JuneThe proportion of oil imported from Russia to 45%

In June, the proportion of oil imported from Russia from Russia increased to 45% in June from 44% in May. Kpler data cited by OPEC showed that Russian oil accounted for 45% of India's total imports in June, up from 44% the previous month. Iraq accounts for 18% of its supply, while Saudi Arabia accounts for 12%. India's total oil imports fell below 5 million barrels per day for the first time in five months, reaching 4.86 million barrels per day, a month-on-month decrease of 2%.

Trump: Powell should cut interest rates immediately! Considering filing a major lawsuit against him

U.S. President Trump posted on social media platforms that "Mr. Taichi" Powell must now lower interest rates. He always does it too late and the damage he causes is immeasurable. Fortunately, the economy is incredibly good and we have beaten Powell and the xmtraders.complacent xmtraders.committee. However, I am considering allowing a major lawsuit against Powell because his work in managing the construction of the Fed is terrible and very incompetent. $3 billion is spent on a work that should have cost $50 million to repair. This is not very good!

Netanyahu is required to attend corruption hearings three times a week

According to the Israel Times on the 12th, the Jerusalem District Court requested Israeli Prime Minister Netanyahu to attend corruption hearings three times a week since November this year, saying that "the litigation process needs to be accelerated." The Israeli court system is currently in a summer recess, and corruption hearings will resume in September. The Israel Times quoted a judge in the Jerusalem District Court as saying that the frequency of hearings will increase from November, with four hearings held every week, and Netanyahu must attend three of them a week until the cross-examination process is over.

The total U.S. Treasury bonds exceeded $37 trillion for the first time

On August 12, local time, the total U.S. Treasury bonds exceeded $37 trillion for the first time as the U.S. federal government continued to accumulate debt at a record rate. The latest data released by the U.S. Treasury Department shows that as of the afternoon of that day, the total amount of US Treasury bonds had reached US$370,0481,7625,842. Maya McGinias, chairman of the Federal Budget Accountability xmtraders.committee, said that the U.S. fiscal situation is seriously unbalanced, but Congress continues to worsen the situation.

Domestic News

Two loan interest subsidy policies were issued to clearly support the consumption and service industry

The Ministry of Finance and Economics jointly issued the "Implementation Plan for the Financial Interest Subsidy Policy for Personal Consumption Loans" and the "Implementation Plan for the Loan Interest Subsidy Policy for Service Industry Business Entities". The interest subsidy policy for personal consumption loans is applicable to specific consumer loans from September 1, 2025 to August 31, 2026. The interest subsidy scope includes household cars, education and training, and the upper limit of the interest subsidy is 3,000 yuan. The service industry loan interest subsidy policy supports 8 categories such as catering and tourism.The maximum interest-subsidized loan scale for the service industry from March 16, 2025 to the end of the year can reach 1 million yuan. Both policies are jointly undertaken by the central and provincial finance departments.

The State Administration of Taxation of the Ministry of Finance: The income obtained by express delivery xmtraders.companies to provide express delivery services shall be paid value-added tax in accordance with the “collecting and distribution services”

The income obtained by express delivery xmtraders.companies to provide express delivery services shall be paid value-added tax in accordance with the “collecting and distribution services”. This announcement shall xmtraders.come into effect on the date of its publication. Matters that have not been processed before shall be implemented in accordance with the provisions of this announcement. Matters that have been processed shall not be adjusted.

The above content is about "[XM Forex Platform]: Trump casts a "bigger network" for Powell's successor, inflation data boosts the Federal Reserve's bet on interest rate cuts and gold prices remain stable around 3350". It is carefully xmtraders.compiled and edited by the editor of XM Forex. I hope it will be helpful to your trading! Thanks for the support!

Only the strong know how to fight; the weak are not qualified to fail, but are born to be conquered. Step up to learn the next article!