Last week, Ben Bernanke, Chairman of America’s Federal Reserve Bank, announced that rates would be left unchanged due to slowing economic growth. USD bulls cringed at the possibility that the Fed was done finished hiking rates. Unfortunately for them, Mr. Bernanke’s assessment was born out by CPI data, released today, which revealed growth in prices is indeed slowing. In fact, the monthly change in inflation was only .2%, the smallest increase in almost half a year. Yields on US debt instruments, including Treasury securities, fell across the board- bad news for traders who are hoping foreigners will continue to finance the US trade deficit. Bloomberg News reports:

The Fed is now done raising rates and will be cutting them next year, said Andrew Balls, a global strategist at Pacific Investment Management Co.

Read More: U.S. Economy: Slowing Inflation Validates Bernanke