- All eyes are on the Fed meeting as a result of stronger-than-expected inflation readings recently.
- Paul Tudor Jones said to “go all-in on the inflation trades” if the Fed dismisses rising prices.
- Insider compiles 3 such inflation trades and 3 hedging strategies if the Fed makes a U-turn.
All eyes are on the Fed’s meeting this week as one hotter-than-expected inflation reading after another keeps adding to the inflationary pressure weighing on the US economy and financial markets.
The Producer Price Index, which measures prices that suppliers charge businesses, rose 0.8% from April and 6.6% year-over-year, making it the largest 12-month increase on record. The Consumer Price Index, which measures final prices paid for goods and services, surged 5% in May from a year ago, another 12-month record since August 2008.
While Fed Chairman Jerome Powell has repeatedly described the threat of inflation as “transitory,” billionaire hedge fund manager Paul Tudor Jones begged to disagree.