Star hedge fund macro trader Colin Lancaster warns: Inflation is back

Talk of inflation has been swirling for some time amid all the stimulus that’s been pouring into the market and the soaring debt levels in the U.S. The Federal Reserve has said that any inflation that does occur will be temporary, but one hedge fund macro trader says there are plenty of reasons not to trust what the central bank says about inflation.

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Colin Lancaster, who previously worked with Ken Griffin at Citadel and Dmitry Balyasny at Balyasny Asset Management, told ValueWalk in an interview that he doesn’t believe central banks have much credibility when it comes to inflation. He added that it’s really hard to trust central bankers when it comes to inflation because they have “chronically mismodeled inflation and inflation expectations over the last two decades.”