This time, the CPI data came in lower than expected, especially with the core CPI annual rate hitting a nearly five-year low, boosting confidence in a rate cut before June. The cooling inflation is mainly thanks to a significant drop in energy prices, while the stickiness of housing inflation has also eased. This was also one of the bases for the earlier judgment that the U.S. and Iran wouldn't escalate into conflict after the top-level talks. For the Fed, with overall CPI dropping to 2.4%, just a step away from the 2% target and on a downward trend, it opens up considerable policy space for rate cuts. However, under current market conditions, there’s no urgency for the Fed to pull the trigger on a rate cut, so they’re in no rush to use this bullet.