Economics

Bond Market Naysayers Are at Odds With Powell's Inflation Positivity

U.S. breakeven rates have tumbled amid recent market turmoil
Chairman Powell sees inflation rate ‘right near’ Fed’s target

Federal Chair Powell says the interest rate hike is appropriate for the very healthy U.S. economy.Source: Bloomberg)

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By Liz Capo McCormick and Sho Chandra

December 26, 2018 at 1:36 PM UTC

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The Federal Reserve is confident that U.S. inflation will come in around its target next year. Heading into 2019 though, bond traders are unconvinced.

“The market is growing increasingly skeptical that we are going to see a roar back in inflation,” said Ben Jeffery, an analyst at Bank of Montreal.