SCHQ - Higher For Longer Inflation And Interest Rates Not Over Until The Fat Lady Sings?

February, 19 2024 11:46 PM Schwab Long-Term U.S. Treasury ETF

2024-02-19 23:46:00 ET

Summary

The Producer Price Index dished up another nasty surprise, with the Services PPI leaping by 7.1% annualized, and with the Finished Goods PPI jumping by 4% annualized in January.
During the current tightening cycle, the 2-year yield started rising in October 2021, about five months before the first rate hike.
The demand by consumers and businesses is robust, and incomes started rising above the rate of CPI inflation in 2023.

Four decades of history say it’s not over until the 2-year yield overshoots the EFFR. It has undershot for a year, and inflation is taking off again. ...

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Higher For Longer Inflation And Interest Rates Not Over Until The Fat Lady Sings?

Company Name:	Schwab Long-Term U.S. Treasury ETF
Stock Symbol:	SCHQ
Market:	NYSE

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Summary