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%

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:

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