U.S. Inflation – Core PCE and Core CPI

U.S. Inflation – Core PCE and Core CPI Inflation is trending downward towards the Fed’s 2% target, a crucial aspect of its monetary policy aimed at maintaining price stability and anchoring inflation expectations at a moderate level. Image: BofA Global Research

U.S. Core CPI Inflation

U.S. Core CPI Inflation The June CPI report suggests the price trend is aligning with the Federal Reserve’s goals, leading Goldman Sachs analysts to anticipate the Fed’s first rate cut in September. Image: Goldman Sachs Global Investment Research

Inflation – U.S. CPI Forecasts

Inflation – U.S. CPI Forecasts With inflation high, the Fed’s interest rate cut decisions require a delicate balance between price stability, economic expansion and employment support. Image: BofA Global Investment Strategy

S&P 500 Earnings vs. CPI and PPI

S&P 500 Earnings vs. CPI and PPI While inflation can have an impact on S&P 500 earnings, it is generally considered more of a lagging indicator rather than a leading indicator. Image: BofA US Equity & Quant Strategy

Contributions to Year-on-Year Headline CPI Inflation

Contributions to Year-on-Year Headline CPI Inflation The shrinking contributions from shelter and private transportation services are expected to result in a slowdown of U.S. headline CPI inflation, reaching 2.8% by the end of 2024. Image: Goldman Sachs Global Investment Research

Inflation – U.S. Core PCE and Core CPI

Inflation – U.S. Core PCE and Core CPI Goldman Sachs’ forecast of a continuous decline in U.S. core PCE and core CPI could have far-reaching implications for the overall economy. Image: Goldman Sachs Global Investment Research

M2 Money Supply and CPI Inflation

M2 Money Supply and CPI Inflation The significant decline in money supply growth is one of the factors contributing to the contraction of inflation in the United States. Image: Real Investment Advice

U.S. Core CPI Inflation

U.S. Core CPI Inflation Morgan Stanley expects U.S. core CPI inflation to cool off in April to 0.29% month-on-month, which should give the Fed some breathing room in terms of their monetary policy decisions. Image: Morgan Stanley Research

U.S. CPI Inflation

U.S. CPI Inflation The BofA Credit Manager Survey indicates that 50% of respondents expect balanced U.S. inflation risks for the remainder of 2024, which can have implications for investment and risk management strategies in the coming months. Image: BofA US Creditor Investor Survey

Inflation – Potential Paths for U.S. Core CPI

Inflation – Potential Paths for U.S. Core CPI If the Fed cuts rates in June, U.S. core CPI is expected to exceed the Fed’s 2% inflation target, which could pose challenges for the central bank in maintaining price stability. Image: BofA Global Investment Strategy