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

Core CPI Inflation

U.S. Core CPI Inflation According to consensus, there is a general expectation that U.S. core CPI inflation has moderated in April. Image: Goldman Sachs Global Investment Research

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

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

U.S. Core CPI vs. Unemployment Rate When Fed First Cut Rates

U.S. Core CPI vs. Unemployment Rate When Fed First Cut Rates It is rare for the Fed to cut rates when core CPI exceeds the unemployment rate, signaling the central bank’s concern about potential inflationary pressures and its emphasis on maintaining price stability. Image: BofA Global Investment Strategy

U.S. Core CPI Minus Unemployement Rate % vs. Fed Funds Rate

U.S. Core CPI Minus Unemployement Rate % vs. Fed Funds Rate The Fed rarely cuts rates when core CPI exceeds the unemployment rate, reflecting the central bank’s concern about potential inflationary pressures in the economy and its emphasis on price stability. Image: BofA Global Investment Strategy

Inflation – U.S. Core CPI

Inflation – U.S. Core CPI Goldman Sachs forecasts that U.S. core CPI will be 3.0% in December 2024. Image: Goldman Sachs Global Investment Research