CICC: US inflation data does not support early interest rate cuts. According to a research report by CICC, the US CPI in November was 3.1% year-on-year, while the core CPI was 4.0% year-on-year, both in line with market expectations. From the perspective of sub items, the continuous decline in energy prices is an important factor in the decline of inflation, but the resilience of service inflation still exists, indicating that the battle against inflation is not yet over. This inflation data supports the Federal Reserve to continue suspending interest rate hikes, but does not support a quick rate cut. We expect the Federal Reserve to hold its ground on Thursday and maintain its forecast of two rate cuts next year, which is much more conservative than the market's forecast of five rate cuts. Powell may refute the market's aggressive expectations for interest rate cuts, but investors may not fully agree, which means that the market and the Federal Reserve may continue to play a game until economic data proves or disproves the necessity of maintaining high interest rates.