There are enough signs of inflation for the Fed to raise interest rates once this year, maybe as soon as its next policy meeting Sept. 20-21, said Kei Katayama, a bond manager in Tokyo at Daiwa SB Investments, which has about $52 billion in assets.
“There are signs of increasing earnings and housing prices,” he said. “We cannot ignore the risk of higher inflation.”
Katayama said his Treasury holdings are “a bit” shorter in duration than those in the benchmark he uses to gauge performance, indicating a more bearish view.
This article was provided by Bloomberg News.