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When Will US Inflation Decline? Goldman Sachs Gives Timeline

  • Goldman Sachs Group Inc GS forecasts core personal consumption expenditure (PCE) falling to 2.9% by December 2023 from 5.1% currently.
  • PCE is the Federal Reserve’s preferred measure of inflation.
  • The decline is attributable to softened supply chain constraints, a peak in shelter inflation, and slower wage growth.
  • Over the weekend, Fed governor Christopher Waller warned that the central bank might consider slowing the pace of rate increases at its next meeting, Reuters reported.
  • The headline CPI rose 7.7% in October, down from 8.2% in September, according to data from the U.S. Bureau of Labor Statistics released last week.
  • The October CPI reading came in below average economist estimates of 8%.
  • Surging inflation and the Fed’s battle to control it has sent Treasury yields and the dollar soaring this year, knocking stocks. The S&P 500 is down around 16% this year, on track for its worst year since the financial crisis of 2008.
  • Image by Foto-Rabe from Pixabay

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