Weak US consumer spending data released today has intensified expectations for a 0.25 percentage point interest rate cut by the Federal Reserve later this year, according to Bloomberg Markets analysis. The data, showing a steeper-than-expected decline in retail sales, signals softer economic growth than previously anticipated, prompting investors to adjust portfolios anticipating lower borrowing costs. This shift is particularly significant as it follows recent signs of resilience in other economic indicators, creating a mixed picture for the Fed's policy path. Market reactions have been swift, with Treasury yields falling and the dollar weakening against major currencies as traders price in more aggressive easing from the world's largest central bank.