The Treasury market’s inflation bulls seem to have gotten a green light from Federal Reserve Chair Jerome Powell to double down on wagers that price pressures will only intensify in the months ahead.
The renewed mojo for the reflation trade follows Powell’s reaffirmation this week of the central bank’s intention to let the world’s biggest economy run hot for some time as it recovers from the pandemic. The Fed’s unwavering commitment to ultra-loose policy in the face of robust economic data is what caught traders’ attention. It took on added significance as it coincided with…
