Vanguard favors inflation protection amid rising price pressure risks
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Vanguard executive Roger Hallam recommends increasing inflation protection in investment portfolios due to recent U.S. data and global risks of a rebound in price pressures. Middle East tensions could lift transportation costs and oil prices, making the strategy attractive for international investors. Vanguard's base scenario is for a 'deferred landing' for the U.S. economy, with continued economic growth and higher inflation but not high enough for the Federal Reserve to hike interest rates again. However, there are 'tail risks' such as a rebound in inflation or weakening economic growth. Vanguard expects inflation and economic growth to continue driving Treasury yields in the next few months, but concerns over the U.S. government deficit and debt burden could gain prominence ahead of the U.S. presidential election in November.
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https://finance.yahoo.com/news/vanguard-recommends-increasing-inflation-protection-191429553.html