Economics
Powell Has Wall Street Buying View That Inflation Won’t Last
- Treasury yields retreat even after prices jump most since 2008
- Druckenmiller complains Fed policy is distorting the market
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Federal Reserve Chairman Jerome Powell and his colleagues appear to be winning over investors with the argument that the current surge in consumer prices won’t last.
When news broke that U.S. inflation climbed to 5% in May for the first time since 2008, yields on the key 10-year Treasury note moved in the opposite direction -- falling to a three-month low of 1.43% on Thursday, before rising back up a bit early Friday. And while bond-market gauges of expected inflation edged upward, they remained well short of this year’s high reached in May.