New York (CNN Business)Red-hot inflation in the United States may not cool off this year as much as many hoped, Goldman Sachs cautioned in a new report.
“The inflation picture has worsened this winter as we expected, and how much it will improve later this year is now in question,” Goldman Sachs economists wrote in a client report Sunday night.
Given that uncertainty, Goldman Sachs is raising its inflation outlook. It expects that core PCE inflation, the Federal Reserve’s preferred price metric, will decelerate to 3.7% at the end of this year.
That’s a jump from Goldman’s previous forecast of 3.1% — and almost double the Fed’s goal of 2%.
