Woofun AI reports that Goldman Sachs research identifies a broadening of inflationary pressures across the U.S. economy, moving beyond limited industries. Using the Personal Consumption Expenditures price index, economist Jessica Rindels notes the inflation pressure index for categories exceeding 3% annualized growth has reached 6, compared to 10 during the 2022 peak. Significant price increases are now emerging in audiovisual equipment, financial services, healthcare, and transportation. While housing rent inflation is projected to fall below 3% in the fourth quarter, potentially easing overall pressure, the widening scope poses challenges for Federal Reserve policy. This analysis aligns with concerns from newly appointed Fed Chair Kevin Warsh regarding the spread of price increases. Unlike former Chair Powell, Warsh is withholding specific interest rate guidance, a shift that Nomura’s Jeremy Schwartz says increases market uncertainty.

Meanwhile, Dallas Fed President Logan supports moderate rate hikes, citing economic resilience that outpaces inflation risks.