In Thursday’s speech from Jackson Hole, Federal Reserve Chair Jay Powell said he is targeting inflation.
Perhaps the market is seeing something similar. This prompts today’s question (and chart):
Are the markets about to send a new message regarding inflation?
Today’s chart “2-pack” highlights a couple of key inflation indicators: The Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.
As you can see, commodities and yields have been in a downtrend for several years – the Commodity Index is marked by each (1).
But both have recently perked up.
If commodities and yields breakout at each point (2) and (3), odds increase a new message is being sent. Stay tuned!
Equal-Weighted Commodities Index “monthly” Chart
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