Goldman Sachs Upgrades Core PCE Forecast for 2025

Goldman Sachs has revised its forecast for core Personal Consumption Expenditures (PCE) growth, predicting a 3.5% increase in 2025. This prediction marks a significant jump from the previous estimate of 3.0%, which was under a less aggressive inflation scenario. Despite this upward trend in inflation, Goldman Sachs anticipates that the Federal Reserve will implement three interest rate cuts later this year to mitigate potential economic slowdown and job losses.