People of the United States of America are in high inflation
United States of America, At the moment, the country is experiencing the highest inflation in 40 years. However, investment bank Goldman Sachs has expressed hope.
According to Reuters, Goldman Sachs expects supply chain complexity to slow in 2023, along with wage growth. Then the rate of inflation will come down.
According to Goldman Sachs, supply chain complexity will be greatly reduced in 2022. Inventories of other consumer goods including cars increased. Semiconductor supply in particular has increased dramatically, with supply up 42 percent over 2019.
On the other hand, Goldman Sachs predicts that the country’s wage growth rate will decrease. The supply of workers in the retail and hotel-motel sectors will increase. As a result, the wage growth rate will decrease by 1.5 percentage points on an annual basis in the latter part of 2023.
Goldman Sachs said in a statement, in now theUnited States of America, the Core Personal Consumption Expenditure (PCE) or consumer spending index is 5.1 percent. This index of the Federal Reserve provides an inaccurate forecast of inflation. The Fed expects this index to fall to 2.9 percent by December 2023.
Fed Governor Christopher Waller warned days before the Goldman Sachs forecast that the central bank may consider slowing interest rate hikes at its next meeting. The reality is that policy interest rates are likely to continue to rise as inflation eases. Because the US economy contracted in the first two quarters of the year, i.e. half of the year, due to the increase in policy interest rates. Not only the United States, but the UK economy also shrank by 0.2 percent in the second quarter of the year, i.e. April-June.
Last week, the US multinational bank said that inflation in the US is now at a bearable level compared to last October.