Otavio (Tavi) Costa: Fed could reach 2 percent inflation by changing measurement, not raising rates

Otavio (Tavi) Costa: Fed could reach 2 percent inflation by changing measurement, not raising rates
Fed may reach target inflation by measurement

Otavio (Tavi) Costa, portfolio manager at Crescat Capital, suggests that the U.S. Federal Reserve could reach its 2 percent inflation target without additional rate hikes or raising the policy target, simply by altering how inflation is measured.

He observes that market participants are not factoring in this possibility, calling it the most probable outcome in his view.

Costa has previously drawn attention to sector moves in precious metals. He recently stated that silver miners could see a breakout as selling prices at $75/oz are far above production costs. In another note, he highlighted that gold miners are showing signs of a bottoming process. These updates add context to his latest comments on inflation measurement.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.