U.S. Inflation Pressures Spread to Broader Sectors; PCE Index at 6 on July 20

According to Goldman Sachs' latest research report released on July 20, U.S. inflation pressures are spreading beyond isolated sectors to a broader range of industries. The PCE-based inflation pressure index currently stands at approximately 6, compared to the 2022 peak of 10, indicating a widening breadth of price increases. Audio-video equipment, financial services, healthcare, and transportation are among the sectors driving current inflation, Goldman economist Jessica Rindels said.

The findings align with new Federal Reserve Chair Kevin Warsh's concerns about inflation "diffusion" across the economy. However, unlike his predecessor, Warsh has refused to provide specific interest rate guidance, increasing policy uncertainty on Wall Street. Meanwhile, hawkish voices within the Fed have intensified; Dallas Fed President Logan expressed support for moderate rate hikes, arguing that current economic resilience does not match inflation risks.