Investors Snap Up TIPS After Fed Puts Focus on Low Inflation
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."