The U.S. dollar’s slide earlier this week reversed after data showed wholesale prices rising at the fastest monthly pace in three years, prompting traders to recalibrate expectations for the Federal Reserve’s next move. The greenback had fallen to a two-week low on optimism that easing consumer inflation would give policymakers scope to reduce borrowing costs at their 16–17 September meeting. Thursday’s report from the Labor Department showed the Producer Price Index jumping 0.9% in July and 3.3% from a year earlier, well above economists’ forecasts. The surprise reading pushed Treasury yields higher and erased market bets on an outsized 50-basis-point cut, leaving a standard 25-point reduction still priced in at roughly 85–90%. Gold, which had benefited from the earlier dollar weakness, retreated and is on track for a weekly decline as the stronger greenback and higher yields dent demand for the haven metal. U.S. equity gains also stalled, while Asian markets opened on a subdued note amid the reassessment of Fed policy prospects. Investors will look for further guidance when Chair Jerome Powell addresses the Jackson Hole gathering on 22 August. Additional labor-market and consumer-price data due before the September meeting could prove decisive in whether the Fed proceeds with the quarter-point cut that markets now regard as the base case.