US November CPI data will be released tonight! Inflation rises slightly, and the Federal Reserve's rate cut plan has become a foregone conclusion.
The US November CPI data to be released tonight, while highly anticipated, is unlikely to have a substantial impact on the Federal Reserve's recent policy direction. Although inflationary pressures remain, the performance of the labor market has become the key factor in current policy adjustments.
According to a Wall Street Journal survey, economists expect the year-on-year increase in November CPI to slightly accelerate to 2.7%, up from 2.6% in October, while core CPI is expected to remain at 3.3%. Considering that the Federal Reserve is currently more focused on the job market rather than inflationary pressures, it is expected to announce a 25 basis point rate cut next week, further intensifying easing policies.
Although the CPI data may reflect slight changes in inflation, the real determining factors will be the ongoing trends in employment and wages, and it is expected that the Federal Reserve will adjust its policies based on these signals. The rate cut decision next week is almost a foregone conclusion, and the market should prepare for it.
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