Fed Has 'Already Lost' Inflation War, Says Gold Bull Peter Schiff After 'Hotter-Than-Expected' December CPI Data: Are Rate Hikes Coming?
Portfolio Pulse from Shanthi Rexaline
The December CPI data indicated higher-than-expected inflation rates, leading economist Peter Schiff to claim the Fed has lost the inflation battle. The CPI and core CPI rose by 0.3% monthly, with annual rates at 3.4% and 3.9%, respectively. The Fed raised interest rates to 5.25%-5.50% in 2023 but may start reducing them by mid-year. The iShares TIPS Bond ETF (TIP) saw a slight increase in its session price.
January 12, 2024 | 8:53 am
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The iShares TIPS Bond ETF (TIP) ended the session up 0.53% at $107.33 after the release of the December CPI data, which showed higher inflation than expected.
The iShares TIPS Bond ETF (TIP) is designed to protect against inflation, so higher-than-expected inflation rates may lead investors to seek out inflation-protected assets like TIP, potentially driving up its price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80