Global stocks rose on Wednesday, bond yields and the dollar fell as traders bet on a Fed interest rate cut next month, possibly by 0.5%. Economic data, not Trump’s pressure, is the Fed’s main concern. Fed Chair Powell faces unclear signals on when to ease rates, despite market confidence in a September cut.

Key market moves include a falling dollar, record highs for major stock indices, and lower U.S. yields. Oil prices drop to two-month lows. Traders are confident in a Fed rate cut next month, with a potential 50 basis point cut mentioned by Treasury Secretary Bessent. Trump is considering 11 candidates to replace Powell, whose term expires in May.

Trump and Putin are scheduled to meet in Alaska to discuss Ukraine. Fed officials face challenges in deciding when to cut rates due to inconclusive economic data. Inflation data shows mixed signals, with core inflation above target. Job growth weaker than expected, but wage growth and hours worked increased. Markets are pricing in a near-100% chance of a September rate cut.

The Fed may face difficulties justifying a rate cut with conflicting economic data, potential labor supply issues, and a strong financial market environment. Powell may struggle to communicate a rate cut without a significant rise in unemployment. Tomorrow’s market movers include Australia’s unemployment data, UK GDP, Eurozone industrial production, and U.S. weekly jobless claims.

Read more at Yahoo Finance: Is the only Fed doubt now a 25 or 50 bps cut?