Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
Bond Markets See Low Inflation Despite Import Price Surge
Import prices from China just hit their highest level since 2008. That sounds inflationary. But the 10-year breakeven inflation rate — the bond market's best guess for future inflation — is actually falling. In this episode, Lucas and Luna unpack the disconnect. They explain why bond traders see tariffs and import surges as one-time price shocks rather than lasting inflation. They also contrast the breakeven with the Fed's preferred PCE gauge, which is still rising. With the Fed funds rate at 3.63% and CPI falling, the hosts explore what the bond market's signal means for…
The skinny
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