CITIC Securities: US CPI significantly lower than expected; Fed is expected to cut rates twice next year.

According to ChainCatcher, citing Jinshi, a research report from CITIC Securities stated that the US November CPI was significantly lower than expected, with core service inflation cooling considerably. However, the data was noisy and its quality was questionable. The analysis suggests that the US inflation outlook is easing, the impact of tariffs on prices will gradually weaken, and rental inflation and hyper-core inflation are likely to maintain low to medium growth rates next year. Although this CPI report provides a short-term boost to dollar liquidity, data quality issues and a calm job market mean that expectations for interest rate cuts are insufficient to significantly boost the market. The report anticipates the Federal Reserve will cut interest rates twice next year, each time by 25 basis points.