Goldman Sachs: Tariff-induced inflation unlikely to last long

Odaily News Goldman Sachs economists predict that inflation caused by President Trump's tariff agenda will flatten out again and will not last long. The U.S. economy is entering the tariff cycle in a weaker state, with more slack in the labor market, than the period of sustained inflation that began in 2021 and 2022, Goldman Sachs analyst David Merrick wrote. Previous inflation was also driven by fiscal stimulus during the pandemic - a factor that may have less impact in 2025, he said. He noted that actual inflation has been relatively stable so far, both in official data and more anecdotal indicators. Merrick predicts that the worst period of inflation may end after the release of August data, putting the Federal Reserve on track to cut interest rates before the end of the year. (Jinshi)