LGOV - On My Mind: The Fed Fights Inflation The Markets Fight The Fed
2023-05-11 00:26:00 ET
Summary
- Now that the central bank signals an intention to keep policy tight for quite a while, most investors are quite happy to bet against it.
- US Treasuries have again rallied even in response to an April Consumer Price Index inflation report that shows headline and core measures broadly stable at about 5% and 5.5% respectively (4.9% on the headline, to be precise).
- I see three key elements of uncertainty that will eventually determine whether investors have picked the wrong fight.
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On My Mind: The Fed Fights Inflation, The Markets Fight The Fed