Despite currently very high headline rates of inflation - CPI of 5.0 % and PPI of 6.6% - the US Treasury yield curve has been flattening since March 31st when the 10-year peaked at 1.74%, the bond market already endorsing Fed Chairman Powell’s view of inflationary pressures as largely “transitory”. Strange then, that in an apparent change of message the recent FOMC decided that inflationary pressures might not necessarily be transitory after all and was already discussing tapering asset purchases,…
‘Has the Fed just killed the cycle?’
21 Jun 2021
Posted by Barry Norris