📝If PCE Inflation Accelerates Pace, Fed 50bps Hikes Seen Beyond July: Goldman Sachs

Forecast annual PCE inflation to accelerate to 4.25% on average in 2Q before falling back to 3.5% in 3Q and 3.25% in 4Q. Alternatively, if prices in supply-constrained categories rebound to pandemic highs and wage growth is stronger than expected, the pace of core PCE inflation could be higher. Under that scenario, inflation would read 4.6% at the September meeting, increasing the likelihood that the FOMC continues hiking in 50bp increments beyond July. - Goldman Sachs