Bond Traders Track Oil as Rising Inflation Bets Muddy Fed’s Job

  • Expectations matter for policy results, Chairman Powell Says
  • Five-year breakeven inflation rate near highest since 2002
Goldman's Courvalin Says Oil Markets Have ‘No Buffer’ Against High Prices
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Bond traders have a new obsession: the cost of oil and gasoline.

That’s because commodity prices -- especially what consumers pay at the pump -- make up an outsized component of inflation expectations, which have been mounting ever higher as Russia’s war in Ukraine intensifies.