Goldman Sachs have cut their US inflation forecast for this year

Goldman Sachs has affirmed they continue to expect US core inflation to decline in 2023:

• we continue to believe that core PCE inflation will fall sharply (in 2023)
• we (have) lowered our core PCE inflation forecast for December 2023 to 3.5% from 3.7%
• (we have) left our forecast for December 2024 unchanged at 2.4%

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The difference between 3.5% and 3.5% for underlying inflation is not enough to shift the course of the Federal Open Market Committee (FOMC).

Market pricing has the FOMC on track to raise rates again this month:

• After strong US data on Thursday the probability of an FOMC July rate hike is nearly 90%

This article was written by Eamonn Sheridan at www.forexlive.com. Source