Expect Chair Powell's first Jackson Hole speech of his second term to reinforce the message in the one in his first term: risks to stable inflation expectations are an emergency at the Fed.
Thanks. I suspect TIPS are a combination of Fed is serious about getting inflation down, signs of supply constraints easing / lower input prices that will likely help on inflation, and in particular, global growth softening. In short, Fed's a part but not all, I suspect.
Great article. Do you think the quick recovery of TIP breakeven rates back below 3% encourage the Fed that their policies are working?
Thanks. I suspect TIPS are a combination of Fed is serious about getting inflation down, signs of supply constraints easing / lower input prices that will likely help on inflation, and in particular, global growth softening. In short, Fed's a part but not all, I suspect.