Aug 16, 2026 · 37 min
TIPS offer inflation protection, but CPI changes complicate the bet
How to Make Inflation Work for Your Portfolio
Persistent inflation and possible changes to the inflation measure could reshape how investors choose between TIPS maturities, cash, and I bonds.
- 1Elevated real yields make TIPS more appealing, but shorter maturities and laddering may limit duration and methodology risks.
- 2Potential CPI revisions could reduce TIPS valuations by changing the inflation measure underpinning their principal and coupon adjustments.
- 3Fiscal pressure, Treasury issuance, and accommodative financial conditions may keep inflation risks alive even as investors seek bond income.
Don't miss
Jill Satina explains why a future change in CPI methodology could affect the value of TIPS, making shorter maturities and laddering more defensible.
The brief
Miriam Gottfried and Jill Satina examine why inflation remains central to fixed-income decisions, from CPI readings and services prices to the Federal Reserve’s policy stance.
Satina argues that elevated real yields make TIPS more attractive, but long-term bonds carry greater exposure to interest-rate moves and possible changes in CPI methodology.
The discussion revisits the Boskin Commission and earlier downward revisions to CPI methodology, showing why investors may price the risk of future changes into TIPS.
Satina favors shorter TIPS maturities and laddering, while also pointing to I bonds as a possible component of a liquidity reserve for some investors.
The broader tension is fiscal: heavy stimulus and Treasury bill issuance could pressure the Federal Reserve to keep rates low even while inflation remains persistent.
Featuring
Miriam Gottfried
Alan Greenspan
Moody's CorporationListen to the full episode and explore every guest, topic, and moment on PodLume.