Last night, the U.S. March CPI data fell from 2.8% to 2.4%. Inflation dropping to 2.4% is a new low since September last year, and it is also the lowest point since U.S. inflation dropped from 9.1% to 2.4% in June 2022.

What does a decline in inflation mean? The inflation rate that the Federal Reserve is most concerned about has decreased, increasing the possibility of interest rate cuts. The only way to save the U.S. economy from a downturn is to actively allow the dollar to depreciate, and the prerequisite for dollar depreciation is certainly a decrease in interest rates by the Federal Reserve.

In the past, the Federal Reserve was slow to cut interest rates, waiting for inflation to decline, and also observing whether inflation would rebound again due to Trump's trade conflict. The current results prove that inflation has experienced an ideal decline, getting closer to the Federal Reserve's 2% inflation target, significantly increasing the likelihood of interest rate cuts. #降息预期