PGIM’s Tipp Sees Long US Bonds Boosted by Fed’s Inflation Focus

Kevin Warsh’s hawkish start at the Federal Reserve is forcing a rethink across the Treasury market, rewarding long-dated bonds and wrong-footing investors who had expected a more politically pliant central bank, according to PGIM’s Robert Tipp.

“It’s been a difficult call for investors because a lot of people have gone with this notion that you’re going to get a political Fed that will cut short rates, and that was a big misperception in my view,” PGIM’s head of global bonds and chief investment strategist told Bloomberg in an interview.

Robert Tipp

Photographer: Victor J. Blue/Bloomberg

If Warsh’s Fed is done cutting and moving ...