Investors Snap Up TIPS After Fed Puts Focus on Low Inflation

Thu, February 19, 2015


The Federal Reserve’s primary dealers were left with the least amount of securities on record at a U.S. sale of inflation-protected debt after policy makers highlighted concern that inflation remains too low.

...“The FOMC appears to be conflicted about the TIPS break-evens,” wrote Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey, in a report following the release of the minutes. “We would give very little weight to TIPS break-evens in the policy debate. The FOMC, however, isn’t willing to throw TIPS overboard altogether."