Goldman Says Markets Too Optimistic on Pace of US Inflation Drop
- Strategists watching impact of energy prices, pace of growth
- FOMC is still concerned about persistent price increases
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Inflation in the US won’t come down as quickly as markets are currently pricing, according to strategists at Goldman Sachs Group Inc.
Investors could be assuming that a sharp deceleration in growth will lead to a more rapid easing of price pressures, and tending to be more bearish on energy prices than what is implied by commodities futures, strategists led by Praveen Korapaty wrote in a note Friday. They see limited ability for those things to lower prices, and say markets are also ignoring the potential for “delayed-onset inflation” in sectors like health care.