Goldman Sachs have cut their US inflation forecast for this year

<p>Goldman Sachs has affirmed they continue to expect US core inflation to decline in 2023:</p><ul><li>we continue to believe that core PCE inflation will fall sharply (in 2023)</li><li>we (have) lowered our core PCE inflation forecast for December 2023 to 3.5% from 3.7%</li><li>(we have) left our forecast for December 2024 unchanged at 2.4%</li></ul><p>—</p><p> The difference between 3.5% and 3.5% for underlying inflation is not enough to shift the course of the Federal Open Market Committee (FOMC). </p><p>Market pricing has the FOMC on track to raise rates again this month:</p><ul><li><a href="https://www.forexlive.com/centralbank/after-strong-us-data-on-thursday-the-probability-of-an-fomc-july-rate-hike-is-nearly-90-20230629/" target="_blank" rel="follow" data-article-link="true">After strong US data on Thursday the probability of an FOMC July rate hike is nearly 90%</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.