[Goldman Sachs Warns of Spreading U.S. Inflation Pressure, Fed Chair Warsh Faces Rate Hike Pressure] BlockBeats News, July 20: Goldman Sachs' latest research report indicates that U.S. inflation pressure is spreading from a few industries to broader sectors. Although the current inflation level has not reached the peak of 2022, the scope of price increases is expanding, posing greater challenges for Federal Reserve policy. Goldman Sachs economist Jessica Rindels analyzed the degree of inflation spread based on the Federal Reserve's key Personal Consumption Expenditures (PCE) price index, using a six-month annualized rate of change. Data shows that compared to the average inflation level from 1990 to 2019, the pressure index for inflation categories exceeding 3% has now reached a level of approximately "6," whereas during the inflation peak in 2022, this index was at "10." The report highlights that sectors such as audiovisual equipment, financial services, healthcare, and transportation have become significant sources of current price increases. Meanwhile, housing rent inflation, which holds a high weight in the PCE, is expected to fall below 3% in the fourth quarter of this year, potentially becoming a key factor in alleviating inflation pressure. Goldman's analysis aligns with the recent concerns of newly appointed Federal Reserve Chair Kevin Warsh regarding the "diffusion" of inflation. Warsh stated that preventing price increases from spreading to more economic sectors is a critical task for the Federal Reserve. However, unlike his predecessor Jerome Powell's relatively clear policy communication style, Warsh has so far declined to provide specific guidance on the path of interest rates. Jeremy Schwartz, Senior U.S. Economist at Nomura Securities, noted that the Federal Reserve is reducing its forward guidance to the market, and this policy uncertainty has heightened concerns on Wall Street. At the same time, hawkish voices within the Federal Reserve are growing. Dallas Fed President Logan has expressed support for moderate rate hikes, arguing that the current economic resilience does not align with inflation risks. [Original Link]