Last night, the US November CPI data was released, and the market reaction was quite intense. The overall CPI year-over-year increase was only 2.7%, well below the market expectation of 3.1%; core CPI rose by 2.6% YoY, also significantly lower than the estimated 3%. This rapid "cooling" of inflation has truly exceeded almost everyone's expectations.

Once the data was out, liquidity markets instantly became volatile. The most direct signal came from interest rate futures— the probability of the Federal Reserve cutting interest rates in January next year has surged to nearly 30%, and the market generally expects the total rate cuts for 2025 to exceed 60 basis points. The White House also quickly responded, with National Economic Council Director Harrington stating that the Fed "still has significant room to cut rates," making the policy shift increasingly clear.

The labor market data is also very encouraging. Last week, initial unemployment claims were 224,000, slightly below expectations, indicating that the employment foundation remains solid, paving the way for subsequent easing policies.

How intense was the market reaction? The US dollar index plummeted sharply— a short-term drop of 22 points; Nasdaq futures surged straight up, rising over 1%, and tech stocks cheered enthusiastically. Mainstream assets like $ETH, $BNB, and $DOGE also felt the warmth of this liquidity expectation wave.

Essentially, the continued slowdown in inflation has given the Fed the confidence to shift towards easing policies. The market has already started celebrating early, heavily betting on a new cycle where monetary policy transitions from "tightening" to "easing." If this trend continues, a rate cut in spring may no longer be just a fantasy.

There are many questions worth pondering: Is the Fed already prepared to initiate a new round of easing? As the global market liquidity turning point approaches, what impact will it have on the stock market, bond market, and forex market? Will the improving inflation data combined with rising rate cut expectations once again ignite asset price bubbles?

A macro shift affecting global capital flows is accelerating. The cooling inflation and soaring rate cut expectations are just beginning to show their impact on the entire asset allocation landscape.