If the CPI unexpectedly rises tomorrow night, it may trigger the Fed to suspend interest rate cuts earlier

Odaily reports that the US CPI report for November will be released on Wednesday. Economists expect the CPI year-on-year growth rate to be 2.7%, slightly higher than the 10.6% in October. A Bank of America strategist said that after the market's muted reaction to the CPI readings in the past few months, this inflation data could be particularly influential for the US stock market. The strategist added that "Conversely, a stronger CPI data could reignite volatility, especially given the 5% rebound in US stocks after the election." More importantly, the inflation data will affect the Fed's upcoming interest rate decision. If there is an upside surprise, it could increase the likelihood of the Fed pausing its easing cycle sooner. According to the CME Fed Watch tool, the market expects an 86% probability that the Fed will cut rates by another 25 basis points at its meeting next week.