According to King Ten, Federal Reserve Chairman Powell has paid more attention to protecting the job market, encouraging a large number of bond traders to bet that inflation will remain high. “Powell is basically backing long the breakeven inflation rate,” said Tim Magnusson, chief investment officer at hedge fund Garda Capital Partners, referring to a trading strategy that profits from inflation-linked bonds outperforming regular U.S. Treasuries. Mark Cabana, a strategist at Bank of America, recommends going long on the 30-year break-even inflation rate. He believes that the Federal Reserve's interest rate cut guidance in the context of loose financial conditions, stronger growth expectations, and increased risks of upward inflation means higher inflation compensation.