Inflation has been higher than expected so far this year.

So what will that mean for the U.S. economy?

What we are not saying is a reigniting and overheating inflation.

We are not seeing a retightening of the labor market,

an increase in wage growth, a worrying rise

in inflation expectations, all of those things

it was completely fair to worry about in 2022. But those problems, the problems that would give you a sustained

inflation problem, those problems were solved quite a while ago.

I'm Allison Nathan and this is Goldman Sachs exchanges. Today I'm sitting down with our chief US economist in Goldman Sachs research David

miracle to help assess the latest economic data and the implications for economic

growth and policy makers. David welcome back to the program.

Thanks Allison.

It's been a pretty busy week for U.S. economy watchers like yourself.

Yeah, absolutely.

So let's start with the hot topic of the week.

See what I did there, because inflation.

Hotter than expected, we did get the hotter than expected

CPI inflation print last week,

and the market reacted very strongly.

We saw a 20 basis point move in the 10-year yield. It's come back a little bit since then, but I want to get your take on that inflation data and I think importantly should the market be as concerned as it seems to be? I don't think we've learned a lot. I think

broadly the right expectation is still that we're headed lower this year, part of the

way, not all of the way, but part of the way back to 2%. We ended last year with core

...