Pat Nerney and Tony Blagrove talk inflation, rates, and Fed policy. Pat thinks the yield curve will continue to steepen from here, and says the market is pricing in a rate cut in September. He’s looking forward to Powell’s Jackson Hole speech for direction on the Fed’s moves. However, the AI sector seems to be ignoring interest rates as it continues to run. Tony foresees a stagflationary environment and says that the market could see “turbulence” if the Fed doesn’t cut rates as expected. “Inflation’s one of those risks, which is why we have to hedge.”