US Economy Sparks Fresh Speculation as Key CPI Report Looms

As US inflation and monetary policy take center stage, an eagerly anticipated Consumer Price Index (CPI) report is set to paint a picture of a stagnant economic landscape, with imminent interest rate cut expectations still holding substantial sway over markets.

The highly anticipated November CPI data, forecast to reveal a 2.7% 12-month inflation rate, marginally surpassing the 2% target, has raised eyebrows in monetary policy circles. The core CPI, meanwhile, remains steady at 3.3%, prompting economists to caution that inflation's stubborn persistence may pose particular concerns for low-income households. This development will likely serve as crucial ammunition for the Federal Reserve as it readies to convene on December 17-18, with a 25 basis points interest rate cut now expected by traders.

Meanwhile, in the technology space, Alphabet－the parent company of Google－has reported a quantum computing breakthrough with its new chip, Willow, poised to significantly enhance computing speeds. This innovative development is expected to benefit tech stocks such as Alphabet, which saw its shares rise on the news.

As we anticipate these economic indicators continue to shape America's financial landscape, all eyes remain fixed on key developments such as China's policy shift to boost domestic demand and the trend of declining US oil inventories, which could further fuel speculations over the oil price direction in the coming months.