Goldman Sachs: "The labor market is not interesting." Inflation dominates the Fed's defense. Comment

GOLDMAN SACHS SAID THAT THE LABOUR MARKET WAS "UNINTERESTED" AND THAT INFLATION CONTINUED TO DOMINATE THE FED'S POLICY DEBATE. LAST WEEK'S CPI DATA WERE IN LINE WITH EXPECTATIONS, PROMPTING A SMALL REBOUND IN THE BOND MARKET AND A SLIGHT RELAXATION IN THE PRICING OF THE SEPTEMBER MEETING. THE UNEXPECTED PPI DATA DRIVE THE STANDARD & POOR'S 500 INDEX TO A NEW HIGH LAST THURSDAY. ACCORDING TO GOLDMAN SACHS, MAJOR PUBLIC DEBT ISSUES AND RECORD-SETTING CORPORATE DEBT SUPPLY ASSOCIATED WITH AI INFRASTRUCTURE DEVELOPMENT REMAIN STRUCTURAL FACTORS IN RISING LONG-TERM RETURNS. THE HEAD OF GOLDMAN SACHS' BOND AND INFLATION TRADING, MIKE MITCHELL, STATED THAT, DESPITE WEAK EMPLOYMENT DATA, IT HAD LIMITED IMPACT ON THE POLICY PATH AND THAT INFLATION REMAINED A CENTRAL CONCERN OF THE FED. ACCORDING TO MITCHELL, THE CURRENT REAL RATE OF RETURN IS CLOSE TO THE HISTORICAL HIGH OF 2.5 PER CENT AND 3 PER CENT, PROVIDING VALUE TO LONG-TERM INVESTORS。