In this week's episode of WSJ’s Take On the Week, we dig into Treasury Inflation Protected Securities, or TIPS! Our co-hosts Miriam Gottfried and Telis Demos are joined by Jill Cetina, finance professor at Texas A&M University and former official at the Federal Reserve Bank of Dallas and the Treasury Department. Together, they analyze the latest inflation data and what it could mean for TIPS if Federal Reserve Chair Kevin Warsh changes the CPI calculation.
Later, Cetina explains why shorter-duration TIPS ladders and I bonds offer better risk protection than long-dated bonds, and why heavy Treasury bill issuance threatens market stability.

Chapters:

00:00 Why real returns matter?
01:20 Meet Jill Cetina, Texas A&M professor
02:30 Breaking down the latest 3.4% CPI print
03:38 What supercore CPI tells us about wages
04:53 Why financial conditions are still easy
09:36 AI, housing and the doves' argument
11:15 TIPS explained
16:38 Could CPI methodology change? And its impact
21:57 Short ladders versus 30-year TIPS
27:33 I bonds and your emergency buffer
30:10 Why the Federal Reserve may need to say "you've had enough"


This is WSJ’s Take On the Week where co-hosts Telis Demos, writer for WSJ’s Heard on the Street, and Miriam Gottfried, WSJ’s investing and wealth management reporter, cut through the noise and dive into markets, the economy and finance—the big trades, key players and business news ahead.

Have an idea for a future guest or episode? How can we better help you take on the week? We’d love to hear from you. Email the show at takeontheweek@wsj.com.

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