Institution: CPI or proof that the cautious stance of the Federal Reserve is correct. The current rebound of the US dollar is unlikely to last.

The US dollar against the euro and the yen fell slightly on Wednesday after reaching multi-week highs the previous day, as US data showed that tariff policies were exacerbating inflationary pressures, leading investors to slightly reduce their expectations of a rate cut by the Federal Reserve. Tiffany Wilding, an economist at Pacific Investment Management Company, said, "The increase in inflation related to tariffs proves that the Federal Reserve's more cautious stance is correct, while the continued slowdown in inflation for service commodities should support rate cuts in September and beyond." The current market focus will shift to the Producer Price Index (PPI) data to be released later today, to further understand whether the pressure on prices is truly beginning to rise. In addition, Michael Pfister, a foreign exchange analyst at Deutsche Bank, said, "Trump's attacks on the independence of the Federal Reserve are unlikely to stop. Given his request for a 300 basis point rate cut, a 25 basis point cut is unlikely to satisfy him. Therefore, the current rebound of the US dollar is unlikely to last long."