The shares outstanding in iShares TIPS Bond ETF, a fund with more than 53 percent of its assets in long-term inflation- linked products, exceeded those of the FlexShares iBoxx Three- Year Target Duration TIPS Index ETF by 23,946 on Sept. 10, the lowest on record
In the second paragraph there is also a subtle shift, with “labor market indicators (and inflation) moving towards levels the Committee judges consistent with its dual mandate”. Previously the Committee had said “labor market conditions would continue to improve gradually”.
Federal Reserve Bank of St. Louis President James Bullard said he’s predicting the central bank’s first interest-rate rise will happen in the first quarter of next year as unemployment falls and inflation quickens.
Today’s $13 billion auction of 10-year Treasury Inflation Protected Securities attracted the highest demand in two years, including record purchases from a category of bidders that includes foreign central banks.
Most of us in the West know, or should know, that all things being equal it is best for the Federal Reserve not to intervene in the economy. We prefer market forces to work. But of course all things are not equal.