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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.