Traders are betting that a Trump 2.0 will lead to inflation, and so are betting that Treasury yields and the dollar will strengthen. But the trade has lost momentum in recent weeks as Democratic nominee Harris has turned the campaign around and erased Trump's advantage in the polls. The Bloomberg Dollar Spot Index has fallen nearly 2% so far in August as traders prepare for the Fed pivot, its biggest drop since markets prematurely prepared for the Fed pivot late last year. This time, though, Fed officials made it clear that they are finally ready to start making their first rate cut this cycle as inflation cools.