Inflation Rippling Through Markets Is Just What Fed Wants to See
- Market gauges edge close to where central bank wants them
- $1.9 trillion Biden stimulus meets Fed plea for fiscal backup
Jan. 19: Inflation Is Already There in U.S., Saxo Bank CIO Jakobsen Says
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Every new sign that U.S. financial markets finally see some inflation in the pipeline is another piece of good news for the Federal Reserve.
Bond-market indicators of inflation, from long-term yields to the cost of hedging, have all pushed higher in recent weeks -- and extended the rise on Thursday after a Treasury auction. Investors can see price pressures waking up -- perhaps more than the U.S. is accustomed to lately, but well short of Fed targets, let alone anything that would set off alarm bells with the economy still stuck in a coronavirus slump.