US Dollar:
1. The US core PCE price index rose further to 3.3% year-on-year in April, the highest level since November 2023, in line with market expectations.
2. Trump sent people to pressure the printing press to issue a $250 bill featuring his portrait.
3. Federal Reserve—① Mussalem: Higher real interest rates should be addressed through interest rate hikes. We cannot expect an AI boom to solve inflation. We consider the possibility of a rate hike to be greater than zero. ② Williams: Monetary policy is well-positioned, slightly restrictive. The inflationary shock is likely to peak in the coming months. The impact of soaring energy prices should be short-term. ④ Kashkari: It is too early to assert that an immediate rate hike is needed after the release of the April PCE inflation data.
Euro:
1. ECB meeting minutes: Several members did not oppose a rate hike; the decision to keep rates unchanged was a "difficult choice" for some members.
Japanese Yen:
1. Tokyo inflation slowed again, and the Bank of Japan's rate hike path faces uncertainty.
2. Japanese Finance Minister: Japan may take decisive measures against exchange rate fluctuations.
3. Former Bank of Japan board member: A June rate hike by the Bank of Japan is crucial; otherwise, it will fall behind inflation.
Other:
1. The Indonesian rupiah fell to a record low against the US dollar.
2. Bank of Canada: The financial system is robust, but its vulnerabilities have increased.
3. Reserve Bank of New Zealand Assistant Governor: If data shows a second round of inflationary effects, a more aggressive rate hike will be considered.
4. According to a Reuters poll: Bearish bets on the Indonesian rupiah have reached their highest level since October 2022.
5. South African Reserve Bank Governor Kaniago: The Monetary Policy Committee did discuss the possibility of a 50 basis point rate hike.
