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Equality
Economics

Forget Taper, Real Deal for Bonds at Jackson Hole Is Inequality

  • HSBC’s Major says any move to address income gap is a key risk
  • Call comes amid growing scrutiny of ultra-easy monetary policy
The Grand Teton National Park mountain range is seen from the Jackson Lake Lodge in Moran, Wyoming.

The Grand Teton National Park mountain range is seen from the Jackson Lake Lodge in Moran, Wyoming.

Photographer: David Paul Morris/Bloomberg
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What policy makers say about economic inequality at this month’s Jackson Hole symposium is potentially a bigger deal for bond investors than any taper talk, according to one market veteran.

HSBC Holdings Plc’s head of fixed-income research Steven Major said measures to address the growing gap between rich and poor could upend a key driver behind a multi-decade bull run for debt: that the well-off are more likely to invest their excess cash in bonds than spend it.