2023-06-17 17:48:45
Goldman Sachs Group
Strategists at Goldman Sachs predicted that inflation in the United States will not decline as fast as markets currently expect.
And Bloomberg agency stated in a report, Saturday, that the analysts wrote in a note dated Friday: “Although we expect more declines in inflation in the future, the markets seem much more optimistic than us regarding the pace of the slowdown.”
Analysts said that markets were ignoring the possibility of “late inflation” in sectors such as healthcare.
And the annual inflation rate in America continued to decline, during last May, for the eleventh month in a row, to its lowest level in more than two years.
And data from the Bureau of Labor Statistics, released on Tuesday, showed that the annual inflation rate in America fell to 4 percent in May, compared to 4.9 percent in April, which was better than expectations of a decline to only 4.1 percent.
The US Federal Reserve kept interest rates unchanged on Wednesday, but noted in fresh forecasts that the cost of borrowing may need to rise once more due to slowing inflation.
During the past week, the main US stock market indices rose collectively, as the “Dow Jones” industrial index rose by 1.25 percent in a week, to reach the level of 34,299.21 points.
The Standard & Poor’s 500 index rose by 2.58 percent, to reach the level of 4409.59 percent.
The Nasdaq Composite Index rose by 3.25 percent, to end the week at 13,689.57 points.
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