Federal Reserve's Williams reveals the truth behind CPI data distortion, easing signals gradually emerging

[BlockBeats] Federal Reserve Vice Chair Williams recently released a significant message: the November Consumer Price Index (CPI) may have been “discounted” due to technical factors.

What exactly happened? Williams explained that during the first half of October to November, there were some glitches in data collection, which led to distortions in certain categories of price data. As a result, this round of CPI appears lower than the actual situation by about 0.1 percentage points. It doesn’t sound like much, but in the face of precise economic data, this is a notable deviation.

But more importantly, what he said afterward. Williams hinted that the US economy is currently doing well, and he will eventually see rates decline—this has sparked a lot of speculation in the market. However, he also emphasized that he is not in a hurry to change monetary policy, meaning rate cuts won’t happen immediately.

For investors focused on macroeconomics, this is a typical “looks like easing, but not so fast” signal. The authenticity of CPI data, the steady performance of economic fundamentals, and the cautious attitude of officials toward policy adjustments are all key factors influencing asset pricing. In the short term, the market may continue to sway amid this uncertainty.