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Goldman Sachs: CPI Meets Expectations, Market Shouldn't Focus on It

On September 11, Goldman Sachs economist Alexandra Wilson-Elizondo stated: "Today's CPI largely meets expectations, which on the surface is the result investors hoped for, but it indeed heightens the suspense for next week's interest rate decision. The challenge is that the data does not fully reflect some of the recent inflation pressures, and there is almost no evidence that inflation is returning to target in the short term. The survey period for this report predates the latest round of energy price increases and the surge in commodity prices that has spread from energy to metals and agriculture. Today's inflation data does not eliminate the possibility of stronger price pressures in the future. In summary, today's data meeting expectations will allow the Federal Reserve to keep the option of raising rates open, but it does not force them to act, so the market may focus more on communication from Waller, energy prices, labor market data, and what happens next, rather than the content released today." (Jinshi)

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