Powell emphasizes focus on job market Bond traders find trading themes in it.
As Federal Reserve Chairman Jerome Powell began publicly discussing protecting the job market, a group of bond traders began betting that inflation would remain high. "Powell is basically supporting going long breakeven inflation," said Tim Magnusson, chief investment officer at hedge fund Garda Capital Partners.
He was referring to a trading strategy that profits from inflation-linked bonds outperforming conventional U.S. Treasuries. Powell made it clear last week that he is now no longer focused solely on keeping inflation down. He also hinted that enough progress had been made on inflation - core inflation has fallen to 2.8% from 5.6% two years ago - to allow policymakers to accelerate the shift to rate cuts in the event of a sudden spike in unemployment. $NVIDIA(NVDA.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$
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