Leading global investment firm, the Goldman Sachs Group has predicted that the U.S. will see a great decline in inflation in the coming year. Acco
Leading global investment firm, the Goldman Sachs Group has predicted that the U.S. will see a great decline in inflation in the coming year.
According to the firm, due to the loosening of supply chain restrictions, a peak in shelter inflation, and slower wage growth, it expects to see a remarkable decline in inflation.
The lender anticipates that core personal consumption expenditure (PCE), the Federal Reserve’s way of measuring inflation, will fall to 2.9% in December of 2023 from its current 5.1%.
Federal Reserve governor Christopher Waller made a statement over the weekend saying that the bank may slow down its pace of rate increase but they do not intend to ease its commitment to lowering inflation.
In October, inflation cooled down a lot more than expected which gives the people more hope that the Reserve could be successful after delivering four consecutive 75 basis point hikes this year.
With the rising inflation and Fed’s attempts to reduce it has sent Treasury yields and the dollar soaring this year, knocking stocks. The S&P 500 is down approximately 16% so far this year, and it’s looking like it’s going to be the worst year since the financial crisis of 2008.
