Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Breaking News

Breaking News

Inflation in the US may be worse than expected, according to Goldman Sachs — The Atlanta Fed President favors a rate hike of 25 BPS

Inflation in the US may be worse than expected, according to Goldman Sachs
Shoppers wear protective masks at a grocery store in Washington, DC, on February 19, 2022. - Mayor M... Shoppers wear protective masks at a grocery store in Washington, DC, on February 19, 2022. - Mayor Muriel Bowser announced the US capital was dialing back its indoor mask requirement on March 1. Masks will not be required at restaurants and bars, sports and entertainment venues, gyms, recreation centers, indoor athletic facilities, houses of worship, businesses, grocery stores and pharmacies, retail establishments and DC government offices that don't have direct contact with the public. (Photo by Stefani Reynolds / AFP)
Inflation in the US may be worse than expected, according to Goldman Sachs
Shoppers wear protective masks at a grocery store in Washington, DC, on February 19, 2022. - Mayor M... Shoppers wear protective masks at a grocery store in Washington, DC, on February 19, 2022. - Mayor Muriel Bowser announced the US capital was dialing back its indoor mask requirement on March 1. Masks will not be required at restaurants and bars, sports and entertainment venues, gyms, recreation centers, indoor athletic facilities, houses of worship, businesses, grocery stores and pharmacies, retail establishments and DC government offices that don't have direct contact with the public. (Photo by Stefani Reynolds / AFP)

While the conflict in Ukraine is a hot topic, Americans living in the country are still concerned about rising inflation, as economists and analysts predict that U.S. inflation will remain high. Furthermore, according to Goldman Sachs, inflation is likely to be worse than expected this year in a report released on Sunday. Furthermore, an economics professor at American International College (AIC) stated that there is “a perfect storm brewing” in terms of inflation and the invasion of Ukraine.

‘A Strong Job Market and Rising Inflation Could Ignite a Moderate Wage-Price Spiral,’ according to Goldman Sachs.

According to a new inflation report released on Sunday by Goldman Sachs economists, inflation was atrocious in 2022 and is unlikely to improve this year. “As we expected, inflation has worsened this winter, and how much it will improve later this year is now in doubt,” the financial institution explained in a note. Goldman’s note to investors comes on the heels of the Consumer Price Index (CPI) report, which revealed that inflation in the United States has risen at its fastest rate in 40 years, since February 1982.

According to Goldman’s report released on Sunday, the financial institution believes that if supply chains and energy producers are disrupted as a result of Ukraine’s conflict with Russia, inflation could rise even higher.

“The initial inflation surge may have lasted long enough and reached a high enough peak to raise inflation expectations in a way that feeds back to wage and price setting,” according to Goldman Sachs analysts. In addition, according to the Goldman Sachs report, a strong job market combined with rising inflation could “threaten to ignite a moderate wage-price spiral.”

‘We’ve got a perfect storm brewing,’ says an AIC economics professor. Raphael Bostic, President of the Atlanta Fed, favors a March 25 basis point rate hike.

Economists and analysts speculate about what the Federal Reserve of the United States will do in March. According to John Rogers, things will depend on what the Federal Reserve does about inflation, an economics professor at AIC. “At the end of the year, inflation will be fairly high,” Rogers told wwlp.com’s news desk.

It’s just a matter of geopolitical unrest. The stock market has been volatile. Anyone who has a 401k plan is probably concerned. Energy is energy; it is a global market and will impact us.

The Federal Reserve has hinted that the benchmark interest rate will likely rise “soon,” with Fed Chair Jerome Powell predicting it will happen in March. However, last week, gold investor and economist Peter Schiff suggested that the Fed’s benchmark interest rate could be kept low due to the conflict in Ukraine. “Perhaps the Fed is relieved that Russia invaded Ukraine because it now has an excuse not to raise interest rates in March,” Schiff speculated on Twitter.

Federal Reserve Bank of Atlanta President Raphael Bostic told attendees at a Harvard virtual event on Monday that he favors a hike of around 25 basis points. “I am still in favor of a 25 basis-point move at the March meeting,” Bostic told the virtual discussion group of Harvard University students.

MORE:


Comment Template

You May Also Like

Economy

On Monday, the U.S. government sued Adobe for hiding high termination fees in its most popular membership plan and making cancellations difficult. The Federal...

Politics

NATO partners have announced the first recipients of their one billion euro ($1.1 billion) innovation fund. The alliance announced the fund in summer 2022,...

Technology

Xbox’s marketing chief is departing to join Roblox as their chief marketing officer as part of a larger marketing shakeup at Microsoft. According to...

Economy

In response to electric vehicle export limits, China has launched an anti-dumping investigation against EU pork and byproducts, targeting Spain, the Netherlands, and Denmark....

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok