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

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

U.S. Headline Inflation and U.S. Core PCE inflation

U.S. Headline Inflation and U.S. Core PCE inflation According to Goldman Sachs, U.S. PCE inflation is expected to converge to the 2% target by 2025, potentially leading to a more predictable and stable economic environment for U.S. consumers. Image: Goldman Sachs Global Investment Research

U.S. Wages vs. U.S. Inflation

U.S. Wages vs. U.S. Inflation Americans are facing real pay cuts due to high inflation, which has been rising faster than wages over the past couple of years. This has significantly eroded the real wages of most American workers. Image: Real Investment Advice

Inflation Forecasts

Inflation Forecasts Deutsche Bank forecasts U.S. core PCE inflation to reach 2.0% by 2026, with U.S. core CPI projected at 2.4% and U.S. headline CPI at 2.4%. Image: Deutsche Bank

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 suggests a potential slowdown in inflationary pressures, which could have significant implications for the overall economic outlook. Image: Goldman Sachs Global Investment Research

Inflation – PCE Deflator YoY Projections

Inflation – PCE Deflator YoY Projections The Fed faces challenges in managing a rate cut amid high inflation, requiring a delicate balance between inflation control, price stability, and economic growth to support employment. Image: BofA Global Investment Strategy

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