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Fed's Preferred Measure of Inflation Dips to 3.4 Percent in August
Goldman now sees a 25-basis-point move in December after August core PCE inflation rose 3.01% year over year, below expectations, Reuters reported.
- Goldman Sachs delayed its forecast for a second Federal Reserve rate hike from October to December after August core inflation came in near 3%, below expectations.
- Federal Reserve Governor Barr warned earlier this week that inflation risks had increased, citing high energy costs and Middle East conflict uncertainty. CME FedWatch odds for an October hike fell from 70.9% on Monday to 49.3% by Tuesday afternoon.
- August core Personal Consumption Expenditures inflation rose 0.25% from July and 3.01% year-over-year, both readings below expectations. New York Fed President John Williams previously stated there was "no urgency" to follow September's rate hike with an immediate second increase.
- Futures markets now reflect about a 38% probability of an October rate hike, down from roughly 51% in the prior session. Goldman sees a strong chance the Federal Open Market Committee will conclude additional rate hikes are unnecessary.
- Market participants focus on the September nonfarm payrolls report due Friday, October 2, which could influence the Federal Open Market Committee's December decision. Goldman sees a strong chance policymakers will determine no further hikes are required this year.
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Goldman Sachs shifts second Fed hike forecast to December
Goldman Sachs has delayed its forecast for a second Federal Reserve rate hike from October to December after August core PCE inflation came in near 3%, below expectations. Goldman Sachs has revised its rate forecast following the September 30 inflation…
Fed's preferred measure of inflation dips to 3.4 percent in August
The Federal Reserve’s preferred measure of inflation dipped in August, as multiple central bank officials have said future interest rate hikes could be on the horizon. The personal consumption expenditures (PCE) price index rose 0.3 percent from July to August and was up 3.4 percent year over year, according to data released Wednesday by the...
·Washington, United States
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Total News Sources30
Leaning Left2Leaning Right3Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
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