The Federal Reserve's recent decision to maintain high interest rates for an extended period has sparked a debate over its potential impact on the U.S. economy. Despite the ongoing economic stability, the Fed's stance has raised concerns among investors and the general public.
Disinflationary forecasts have fallen out of favor recently, especially following three consecutive months of unexpected inflation increases. Yet, Goldman Sachs economist Jessica Rindels has made a bold call, predicting a downturn in the core Personal Consumption Expenditure (PCE) Inflation – the Federal Reserve’s preferred inflation metric – for the remainder of the year. According to Rindels, the re-acceleration to a 4.0% average monthly annualized pace in early 2024 was influenced by transien