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Ronnie Stoeferle highlights that one-year inflation swaps have continued to reach new lows, now falling well below the U.S. Federal Reserve's 2 percent target.
This suggests that market expectations for short-term inflation have eased significantly.
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Stoeferle has previously noted that metals prices remained steady after the Federal Reserve adopted a hawkish stance on interest rates in its latest decision. He has also tracked China’s accumulation of gold, reporting that the country has built up its reserves for 20 consecutive months to reach 2,346 tonnes held. The recent moves in inflation expectations follow these ongoing market observations.