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

More:

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

Goldman Sachs report on the inflation 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: