Prominent Economist Paul Krugman Says 'Inflation Beaten,' Underlines This As Reason For Sticky Pricing Pressure
Portfolio Pulse from Shanthi Rexaline
Prominent economist Paul Krugman declared that inflation appears to be under control, citing recent data showing a decrease in the personal consumption expenditure index (PCEI) to 2.6%. This could increase the likelihood of rate cuts by the Federal Reserve. The iShares TIPS Bond ETF (NYSE:TIP) ended Friday's session down 0.31%.
June 30, 2024 | 5:06 pm
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The iShares TIPS Bond ETF (NYSE:TIP) ended Friday's session down 0.31%, reflecting the market's reaction to the latest inflation data and Krugman's comments on inflation being under control.
The decrease in TIP's value suggests that investors are less concerned about inflation, aligning with Krugman's comments. If inflation is indeed under control, the demand for inflation-protected securities like TIP may decrease, leading to a short-term decline in its price.
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IMPORTANCE 70
RELEVANCE 80