Inflation Is Being Driven More by Investment Than Consumption

By Law Ka-chung The Federal Reserve recently released a confusing signal to the market about their policy stance of being hawkish or dovish. This is expected given their “argument” that the bond market has done the tightening job for them. Unless the Federal Reserve has lost credibility with the market, long-tenor Treasury yield should be a predictor of policy rate. That “argument” is tautological…

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