The US Dollar has lost -23% of its purchasing power since 2020. In other words, if your assets are up +30% since 2020, you have effectively just broken even in real terms. Inflation has now been above the Fed's 2% target for 60-straight months, and the bond market knows this.
Why now
Thesis: Persistent inflation erodes dollar purchasing power
Catalyst to watch: CPI prints and Fed policy path
Main risk: Inflation may cool faster than claimed
Why it matters
Sustained inflation above target erodes purchasing power, supporting real assets and pressuring long-duration bonds.
Details
The US Dollar has lost -23% of its purchasing power since 2020. In other words, if your assets are up +30% since 2020, you have effectively just broken even in real terms. Inflation has now been above the Fed's 2% target for 60-straight months, and the bond market knows this. Own assets or be left behind.
Related assets & topics
InflationDollarFederal ReserveGoldTreasury BondsSources
- x · 2026-09-25 18:00 UTC