Deep Dive: Challenging misconceptions about inflation

How can we prepare for an uncertain future?

Jeffrey Cleveland, chief economist at Payden & Rygel, dives into the fixed income market.

As economists, we are constantly prodded for predictions. But, we side with American professional baseball catcher Yogi Berra, who (allegedly) said: "It is tough to make predictions, especially about the future." Especially true, we think, amid the unusual economic uncertainty and volatility spawned by Covid-19.  Yet, the clamouring for clairvoyance persists. Inflation provides a prime example. Investors would love to know where inflation rates will be in the near and far future as price trends will ultimately determine what happens with both short and long interest rates.  So what is...