5 January 2026 | 6:05AM GMT Economics Research EUROPEAN ECONOMICS ANALYST Euro Area Outlook 2026: Cyclical Boost, Structural Drag, Unchanged Rates Sven Jari Stehn +44(20)7774-8061 | jari.stehn@gs.com Goldman Sachs International Filippo Taddei +44(20)7774-5458 | filippo.taddei@gs.com Goldman Sachs International Alexandre Stott +33(1)4212-1108 | alexandre.stott@gs.com Goldman Sachs Bank Europe SE - Paris Branch Katya Vashkinskaya +44(20)7774-4833 | katya.vashkinskaya@gs.com Goldman Sachs International Giovann ...

The Bank of Japan shows growing conviction that it can attain the stable inflation target it has pursued for more than a decade: Here is your Evening Briefing. https://t.co/g2aYy9qp9D ...

It has been a week since three Federal Reserve members bucked the group's decision to cut interest rates by 25 basis points. Newly appointed Fed Governor Steven Myron, well, he voted for a jumbo cut. He wanted 50 basis points chopped off the interest rate.But Kansas City Fed President Jeff Schmid and Chicago Fed President Austin Goulsby both voted for a pause in rate cuts. Goulsby specifically noting he wanted more clarity on inflation data before another cut. Well, we just got it.The November consumer pric ...

South Africa’s new lower inflation target is giving the rand fresh momentum, with policymakers and analysts agreeing it could curb a long-term track record of weakness https://t.co/ad0WZfnGu4 ...

South Africa’s central bank credits its new 3% inflation target for already helping guide expectations lower across the economy https://t.co/vOv6j89ofu ...

Where Does the Fed’s Inflation Target Stand Now? https://t.co/Co6Xkkb235 ...

South Africa is expected to lower interest rates, after the formal adoption of a 3% inflation target and the government’s display of fiscal discipline provided policymakers with room for easing https://t.co/z2BD6czm9t ...

Market Overview - Markets are hovering close to record highs, with discussions around whether the current valuations are sustainable or indicative of a bubble [1][10] - The S&P 500 is currently trading at 23 times earnings, with a target of 7,900 for the end of next year, suggesting a bullish outlook despite concerns about overvaluation [7][29] AI and Investment Sentiment - There is ongoing debate about whether the AI sector is experiencing a bubble, with some models indicating that major companies in this space are currently fairly valued [20][22] - The sentiment in the market tends to shift from greed during earnings season to fear afterward, creating potential entry points for investors [11][13] Technical Analysis - The moving average is highlighted as a key technical analysis tool, with the 50-day moving average recently breaking through in major indices, indicating potential market trends [24][25] - The importance of using moving averages to gauge entry and exit points in the market is emphasized, particularly in relation to valuation [26][31] Federal Reserve and Inflation - The Federal Reserve's inflation target of 2% has been a topic of contention, with arguments that it is too rigid and not reflective of current economic conditions [34][36] - The Fed's actions, particularly rate hikes, have historically led to recessions, and there is a call for a more flexible approach to monetary policy [39][51] Housing Market Insights - The housing market is currently in a recession, with construction starts below critical thresholds, but this has not yet led to a broader economic recession [48][51] - The impact of technology on the housing market is noted, as it offsets some of the slow growth seen in construction [43][44] Investment Strategies - A diversified investment approach is recommended, incorporating both income-generating assets and growth-oriented stocks, particularly in the current market environment [55][58] - The discussion includes a preference for riskier fixed income options and large-cap dividend stocks, while cautioning against investments in non-cash flow producing assets [57][59]

Do you think the 2% inflation target should be scrapped. >> I don't think it should be scrapped. I think it should be changed.I have been of the view that a better inflation target is a range, not a point estimate. A point estimate suggests precision that is elusive. Second, that range should be higher than 2%.It should be the two and a half to 3%. What is undeniable is that we are at a stable 3% inflation and that hasn't in any way unanchored inflationary expectations. ...

The rand strengthened below 17 per dollar for the first time since February 2023 after the government adopted a lower inflation target https://t.co/8YWXyzII4e ...