Goldman Sachs Predicts Core PCE Increase in 2025

According to Odaily, Nick Timiraos, a prominent voice on the Federal Reserve, shared on the X platform that Goldman Sachs now anticipates the core Personal Consumption Expenditures (PCE) to rise to 3.5% in 2025. This is an increase from the previous estimate of 3.0% under less aggressive tariff scenarios. Despite the upward pressure on inflation, Goldman Sachs still expects the Federal Reserve to implement three interest rate cuts in the latter half of this year to address impacts on economic growth and employment.