Goldman Sachs: CPI Broadly Meets Expectations, Markets Should Look Beyond It

According to Jin10, Goldman Sachs economist Alexandra Wilson-Elizondo said today’s CPI was broadly in line with expectations, but it leaves next week’s interest-rate decision highly uncertain. She said the report does not fully reflect some of the recent inflation pressures, shows little evidence that inflation is returning to target in the near term, and was compiled before the latest rise in energy prices and before the commodity rally spread from energy to metals, agriculture, and other areas. Wilson-Elizondo said the data keeps the Federal Reserve’s rate-hike option open without forcing action, so markets may focus more on Kevin Warsh’s communication, energy prices, labor market data, and what happens next than on today’s release.