CPI unexpectedly declines, triggering a chain reaction; Federal Reserve's rate cut expectations for 2026 are heating up.

2025-12-18 13:42:11

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【BitPush】The latest released CPI data significantly underperformed expectations, which has already triggered a clear market reaction. US stock index futures rose accordingly, and Treasury bonds continued to climb.

From an analytical perspective, this inflation report is changing the market narrative. Although the Federal Reserve has another interest rate meeting scheduled for January, during which other economic indicators will also be released, this CPI result has already prompted many institutions to seriously discuss the possibility of further rate cuts in 2026.

More interestingly, this shift in inflation data is pushing internal debates within the Federal Reserve toward a dovish stance. If this trend continues to develop, the perspectives within the Fed’s decision-making body could clash in entirely different ways—from previously maintaining caution to becoming more open to rate cuts. For the entire financial market, this could mean the formation of a more moderate policy environment.

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FlatTax

· 12-18 18:27

Wow, CPI so low? Then Powell must compromise with the dovish members --- Starting to cut interest rates again? I said inflation isn't that exaggerated, now it's the bears' turn to eat some meat --- Interest rate cuts in 2026? Wake up, buddy, the Fed isn't that quick yet --- This wave of dovishness suddenly stands up... Feels like the crypto market is about to get active again --- Really? CPI so low? Why are prices still rising on our side --- Rising expectations of rate cuts = liquidity returning? My altcoins still have a chance

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CryptoPunster

· 12-18 18:11

Haha, the dovish side is about to win again. The Federal Reserve is playing "hide and seek," first scaring us then relaxing, brilliant. When CPI drops, Treasury bonds soar. This is the "surprise blind box" of the financial market. Opening it reveals expectations of rate cuts again, hilarious. It's not even 2026 yet, everyone. Let's first make up for the 2025 losses before talking. Internal disputes within the Federal Reserve, and in the end, the winners are those institutions. What about us retail investors... just watching the show. Wait, the logic has shifted again. Is it time to buy at high prices again? Why am I feeling a bit nervous?

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DEXRobinHood

· 12-18 14:03

Wow, CPI is so low? The dovish stance is taking off, and a rate cut in 2026 seems to be on the way. Speaking of which, the Federal Reserve's attitude shift is so quick, they were still hawkish before... Looks like data is the ultimate authority. If expectations for rate cuts heat up, that should be good news for the crypto market, right? Liquidity will become more relaxed. Really? Treasury yields are still rising? This combination of tactics is quite interesting. Wait, there's a meeting in January too. Let's wait and see... but this momentum does look pretty good.

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MEV_Whisperer

· 12-18 13:45

Looking at this CPI data, it feels like the Federal Reserve is about to start easing monetary policy. The expectation of rate cuts in 2026 is really impressive. The Fed is about to tear itself apart internally. Is the dovish faction gradually gaining power? This should be good news for the crypto world. The unexpectedly low CPI directly changes the entire market narrative. This is the power of the market—so crazy. The expectation of rate cuts is heating up, which is definitely positive news. Institutions will flood in again. Basically, inflation is under control, and the Federal Reserve can confidently cut rates. Our good days are coming. It feels like after this wave of data is released, crypto prices will start to move actively. Those who have laid out early can rejoice secretly. The Fed's attitude has shifted so quickly? It seems the pressure is really intense, and they have to proceed cautiously. The idea of rate cuts in 2026 still sounds far away, but the market is already speculating on this expectation. It's really interesting.

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LeverageAddict

· 12-18 13:44

Another rate cut expectation? Is it true or false... It was said the same way last year at this time, and what was the result?

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