A couple of snippets from Goldman Sachs, their economists and then their asset managers.
Goldman Sachs economists:
- We view today’s report as supportive of our call for a pause at the June FOMC meeting followed by a hike in July.
Goldman Sachs Asset Management analysts:
- Today’s CPI number was a relief for the market, as the data met expectations, confirmed the dis-inflationary trend, and re-affirmed current market pricing of a Fed pause tomorrow.
- However, the rate of dis-inflation remains incompatible with the Fed’s 2% target.
- We expect the Fed to deliver a hawkish pause tomorrow and to highlight the possibility of following a similar path to the Reserve Bank of Australia and the Bank of Canada, who both hiked after a pause.