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Bond Market Inflation Gauge Shows Doubts About Swift Fed Victory
A closely watched bond-market gauge of expected US inflation is rising back toward a nine-year high, signaling concern the Federal Reserve may continue to wrestle with elevated price pressures for years. Ahead of the latest monthly consumer-price index data on Thursday, a key long-term measure of where the market sees inflation heading has risen to around 2.5%, just shy of the peak in April 2022, when it reached the highest since 2014. The upward shift in the gauge — the so-called US five-year inflation breakeven that begins in 2028 — stands in contrast to broader speculation that the Fed’s steep interest-rate ... (full story)