Economists at Goldman Sachs estimate that the Fed’s preferred inflation gauge, stripping out food and fuel costs, will slow to 2.9 percent by next December from 5.1 percent today. That would be way better, but still be notably too fast.The Fed is trying to thread the needle.Still, Fed officials do not want to push rates endlessly higher, heedless of how much that could cost the economy, as this year’s policy moves are still only beginning to kick in.That is why policymakers have come to support slowing down their policy moves. Officials have been moving interest rates up by three-quarters of a percentage point per meeting since June, but investors expect them to slow their rate increases to half a point in December before feeling their way forward in 2023.Dialing back the pace will give them time to feel out how much more is needed.“By moving forward …
