Goldman Sachs Says Inflation Rate May Rise

Goldman Sachs is forecasting a month-over-month inflation increase of 0.05 to 0.25 percentage points, Anushka Basu reported for The Street.

This could limit the extent of any future Federal Reserve rate cuts.

Year-over-year core inflation could hit 3.5%, up from 2.8% in April, despite easing pressures in the labor, housing, and automotive sectors. “In the months starting in June, we expect to see a larger tariff boost and higher core CPI prints,” an analyst told Morningstar.

This could limit the extent of any future Federal Reserve rate cuts, though risk assets such as cryptocurrencies are responding positively so far.

Bitcoin has remained above $109,000 in the past 24 hours, while Ethereum is trading at $2,700—both higher on the day, according to Kraken.

On May 9, a new SEC filing revealed that Goldman Sachs now holds 30.8 million shares of BlackRock's iShares Bitcoin Trust (IBIT), worth approximately $1.4 billion—a 28% increase from the previous quarter.

This indicates the blue-chip investment bank has significantly raised its stake in Bitcoin. In May, the U.S. economy added about 139,000 jobs, but the unemployment rate remained unchanged, as the proportion of people working also stayed the same.

If hiring slows further, the Fed may feel more pressure to loosen monetary policy—an environment typically favorable for digital assets like Bitcoin, which tend to perform well when real interest rates decline.