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.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
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.