On October 30, Goldman Sachs economist Jan Hatzius said that the CPI, excluding food and energy costs, is expected to remain above 4% at the end of the debt reduction program next year. Hatzius said the main reason for the new forecast is that inflation is expected to be more stubborn than they had previously expected. In addition, with inflation well above target and job creation high, officials may conclude that "any remaining weakness in the labor market is structural or voluntary."
