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Callum Thomas said that inflation expectations are becoming anchored at higher levels and stated that the Federal Reserve has a clear mandate in this context. He added that more rate hikes are likely to follow.
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Thomas recently pointed out that TLT's total return, once adjusted for CPI and interest, is nearly back to its starting level since inception, highlighting the impact of inflation on bond returns (link). In a separate note, he warned that further Fed rate hikes could push investor positioning and market valuations to historical extremes (link). His recent comments add to a series of warnings about persistent inflation pressures and policy risks.