US Dollar Drops as GDP Miss and Core PCE Jump Cloud Fed Cut Bets
The dollar slid on Thursday, following a first-quarter GDP read that missed estimates—even as core inflation edged higher, muddying the takeaway from the headline growth numbers and complicating the Federal Reserve picture. According to XTB, weaker GDP figures weighed on the greenback despite evidence of mounting price pressures. This lands just hours after the Fed left rates pinned at 3.5%-3.75%, with policymakers divided on whether the statement should keep hinting at potential rate cuts. The central bank called inflation “elevated” and flagged that turmoil in the Middle East brings “a high level of uncertainty” to its outlook.