Monthly Number of Global Central Bank Rate Cuts

Monthly Number of Global Central Bank Rate Cuts In response to slowing inflation and the need to bolster economic growth, central banks around the globe are shifting towards a more accommodative monetary policy. Image: BofA Global Investment Strategy

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. CPI Inflation

U.S. CPI Inflation – Volatility vs. Inflation The United States has had remarkably steady inflation rates for 40 years, unlike the fluctuating patterns seen since 1775. This anomaly can be attributed in part to monetary policies aimed at keeping inflation levels low and stable. Image: BofA Global Research

Inflation – U.S. CPI Forecasts

Inflation – U.S. CPI Forecasts If the Fed cuts rate hikes in June, the U.S. headline CPI is expected to exceed the Fed’s 2% inflation target, potentially creating challenges for the central bank in maintaining price stability. Image: BofA Global Investment Strategy

Inflation – Core PCE and Forecasts

Inflation – Core PCE and Forecasts The decline in U.S. core PCE inflation from the elevated levels observed in 2022 has significant implications for monetary policy, consumer behavior, and the broader economy. Image: BofA Global Research

U.S. Core PCE Inflation

U.S. Core PCE Inflation U.S. core PCE, which is the Fed’s preferred inflation measure, has already fallen below 2% over a six-month period, which is positive news. Image: BofA Global Research

Contributions to Year-on-Year U.S. Core PCE Inflation

Contributions to Year-on-Year U.S. Core PCE Inflation Goldman Sachs maintains its projection for a decrease in U.S. core PCE, the Fed’s preferred measure of inflation, which could have significant implications for the broader economy. Image: Goldman Sachs Global Investment Research

Inflation – CPI Forecast

GDP Growth and CPI Forecasts In 2024, global growth is expected to mildly decelerate, followed by a gradual recovery in 2025. Additionally, inflation is projected to gradually decrease across most countries. Image: BofA Global Research

S&P 500 Total Return and Historical Inflation Peaks

S&P 500 Total Return and Historical Inflation Peaks Historically, U.S. stocks have shown a tendency to increase when there is no recession following a peak in inflation. Image: Goldman Sachs Global Investment Research

Inflation – U.S. Core PCE and Core CPI

Inflation – U.S. Core PCE and Core CPI Goldman Sachs forecasts a significant decline in U.S core PCE and core CPI, which could have significant implications for the broader economy. Image: Goldman Sachs Global Investment Research