Post-Jackson, it’s time to start filling duration holes

Jackson Hole in one word: Hawkish. Fed Chair Jerome Powell’s opening remarks at last week’s Jackson Hole symposium reaffirmed the central bank’s determination to keep a tight rein on inflation. While year-over-year headline CPI has fallen sharply from its June 2022 peak of 9% to about 3%, and core CPI has eased to 5%, these levels remain too high for the Fed’s comfort.