Zeev's Turnips Patch-No Politics (ZEEV)

[butterfly111]

Goldman Cuts Forecast
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYYHhaloADbM&refer=worldwide_news
The producer-price figures prompted economists at Goldman Sachs Group Inc. to cut their forecast for tomorrow's consumer- price report, the broadest measure of inflation because it includes the cost of services as well as goods.

``The Fed exposed itself to some risk if the numbers don't cooperate, and today's report diminishes that risk a bit,'' Jan Hatzius, chief U.S. economist at Goldman in New York. A low consumer price number tomorrow ``would definitely help make the case for the Fed and be very welcome.''

Goldman now projects retail prices rose 0.4 percent last month, down from a previous forecast of 0.6 percent. Core prices probably rose 0.2 percent, rather than the 0.3 percent expected earlier.

Today's report ``certainly weakens the view that the Fed has fallen woefully behind the curve, and reinforces the Fed's decision,'' said Richard DeKaser, chief economist at National City Corp. in Cleveland. Still, ``it's much too soon to assign any kind of triumph over rising inflation.''