Goldman Sachs: Markets are More Optimistic than Us Regarding US Inflation

Bloomberg reported today, citing a memo from strategic analysts at Goldman Sachs, that inflation in the United States will not decline as quickly as the markets currently expect. The report stated that the analysts wrote in the memo dated yesterday, Friday, "Although we expect further decreases in inflation in the future, the markets seem much more optimistic than us regarding the pace of the slowdown." The analysts noted that the markets are ignoring the possibility of "lagging inflation" in sectors such as healthcare. The Federal Reserve kept interest rates unchanged on Wednesday but indicated in new forecasts that borrowing costs may need to be raised again due to the slowing decline in inflation.