Goldman Sachs - US CPI report makes a solid case for a Fed step down to 3 * 25bp hikes

The US CPI data was released Thursday, ICYMI:

• US December CPI +6.5% y/y vs +6.5% expected

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• Forexlive Americas FX news wrap: US dollar crumbles after CPI

Goldman Sachs report on the inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term data, the key takeaway is:

• We see today’s CPI report as solidifying the case for a step down to a 25bp rate hike in February
• We continue to expect 25bp hikes in each of February, March, and May.

The Federal Open Market Committee (FOMC) next meet on January 31 and February 1: