Recently 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 round of inflation is about to start. Stay tuned!
This chart was first written for See It Markets.com. To see the original post CLICK HERE.
