Guangfa Securities: The necessity of a short-term interest rate cut by the Federal Reserve continues to be low.

Guangfa Securities research report pointed out that the December CPI data, although affected by the previous government shutdown, showed some fluctuations, but the core reading remained mild. Before the release of this data, the market had already anticipated that the technical disruptions caused by the previous government shutdown and year-end effects would cause some sub-items to fluctuate. Therefore, the market generally views the rebound in sub-items such as clothing, entertainment goods, and hotel accommodation as a correction of base effects rather than a trend change. In the context of "inflation not derailing + employment not slowing down", we understand the continued necessity of lowering interest rates in the short term.