Goldman Sachs response to the US CPI report – affirms a final FOMC rate hike July

<p>The US CPI report for June came in lower than the consensus expected for both headline and core m/m.</p><ul><li><a href="https://www.forexlive.com/news/us-june-cpi-yy-30-versus-31-expected-20230712/" target="_self" rel="follow">US June CPI y/y 3.0% versus 3.1% expected</a></li></ul><p>Goldman Sachs say that the result of the inflation report "is consistent with our view that Fed tightening is in its final innings".</p><p>GS said they thus continue to expect:</p><ul><li>"a final 25bp hike at the July FOMC meeting to 5.25%-5.5%</li><li>followed by unchanged policy for the remainder of the year"</li></ul><p>More on the market response to the US CPI is here:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-12-jul-us-cpi-softer-usdyields-lower-stocks-higher-20230712/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap 12 Jul: US CPI softer. USD/yields lower. Stocks higher</a></li></ul><p>Big love from the EUR!</p>

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