John Authers, Columnist

Markets Bet the Fed Really Does Like It Hot

Real yields have stayed anchored despite a surge in inflation expectations. Are investors right?

February 9, 2021 at 1:28 AM EST

John Authers is a senior editor for markets and Bloomberg Opinion columnist. A former chief markets commentator at the Financial Times, he is author of “The Fearful Rise of Markets.”

The inflation mercury is climbing.
Photographer: artpartner-images/Getty Images

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Expectations for inflation are breaking upward, as are stock markets. In the U.S., 10-year inflation expectations are their highest since 2014, at just above 2.2%. German inflation expectations are also rising sharply, but the gap between the two is now the widest it has been since the global financial crisis in 2008:

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