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US Economic Data Fuels Fed Rate Cut Bets, Dollar Watch

February 9, 2026, 12:01 PM175 words7 sourcesAI-Generated · Reviewed by editorial team
US Economic Data Fuels Fed Rate Cut Bets, Dollar Watch

Photo: Pexels / Nataliya Vaitkevich

The US economic outlook is a central focus this week, with a trifecta of key data releases – retail sales, the labor market report (NFP), and CPI – poised to significantly impact market sentiment and the Federal Reserve’s policy path. Economists at Wells Fargo anticipate a softer labor market, forecasting 80K jobs added and a 4.4% unemployment rate, alongside a continued, albeit sticky, inflation rate of around 2.5% year-over-year. While the market largely anticipates the Fed holding rates steady in March, rate cuts are increasingly priced in for June and potentially September. However, concerns about persistent inflation among some Fed officials introduce uncertainty. A strong NFP report could bolster the dollar, while a weak one could strengthen the case for easing. Debate also surrounds the potential for a revised relationship between the Fed and Treasury, with some, like Kevin Warsh, proposing a revisiting of the 1951 Accord, raising concerns about central bank independence and potential yield management. The Singapore Dollar is expected to remain firm, supported by a strong Chinese Yuan and resilient domestic growth.

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This article is based on analysis of 7 source articles from our news database.

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