Goldman Sachs: CPI Largely in Line with Expectations, Market Need Not Focus on This

According to a report by Jinse Finance, on September 11, Goldman Sachs economist Alexandra Wilson-Elizondo stated: "Today's CPI is largely in line with expectations, which on the surface is the outcome investors were hoping for, but it does significantly heighten the suspense around next week's rate decision. The challenge lies in the fact that the data does not fully reflect some of the recent inflationary 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 surge in energy prices and the broader rally in commodities, which has extended from energy to metals and agriculture. Today's inflation data does not eliminate the possibility of stronger price pressures in the future. All in all, today's data, which meets expectations, will allow the Federal Reserve to retain the option to raise rates but does not compel immediate action. Therefore, the market may shift its focus to Waller's communications, energy prices, labor market data, and upcoming developments, rather than today's release." (Jin10)