Brandywine Global portfolio manager Chen said strong US nonfarm payrolls point to a recovering labor market and that the Fed should refocus on inflation. Inflation is now roughly on par with the unemployment rate (May unemployment 4.3%), suggesting the Fed may be behind the curve. Inflation swaps show traders expect July CPI to top 4.2% and to moderate to about 3.8% by the first quarter.

2026-06-05

Brandywine Global portfolio manager Chen said strong US nonfarm payrolls point to a recovering labor market and that the Fed should refocus on inflation. Inflation is now roughly on par with the unemployment rate (May unemployment 4.3%), suggesting the Fed may be behind the curve. Inflation swaps show traders expect July CPI to top 4.2% and to moderate to about 3.8% by the first quarter.