Goldman Picks a Side in One of the Fed's Most Contentious Debates

Getting to the bottom of inflation's chicken-or-egg problem.

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Federal Reserve officials who believe a tightening labor market is sufficient proof that inflation is on the way up have a friend in Goldman Sachs Group Inc.

With monetary policy makers beginning to rethink conventional wisdom on how inflationary pressures build, Goldman's U.S. Economist Daan Struyven offers some evidence that may tip the scales towards raising rates sooner rather than later.