Inflation-Linked Bonds Rebound on Trump Tariffs: Credit Weekly
As the Trump administration’s plans for tariffs shift regularly, money managers continue to prepare for potential turmoil.
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Money managers are flocking to bonds that hedge against inflation amid uncertainty about tariffs and their impact on the cost of living.
Federal Reserve Bank of Philadelphia President Patrick Harker warned this past week that risks to the economy are rising, in part due to increasing prices. That fear helped spur the Bloomberg Global Inflation Linked Index, a gauge of investment-grade inflation-linked debt in developed markets, to gain about 5% from Jan. 13 through Thursday’s close.