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AP1 sides with the Fed on inflation

Sweden's AP1 is uncomfortable betting against the US central bank, which has turned its prediction for "transitory inflation" into a mantra that gets repeated to nervous market participants every time there's another sign of a spike in prices.
Kristin Magnusson Bernard, the chief executive of Sweden's AP1 pension fund. | Photo: AP1/PR
Kristin Magnusson Bernard, the chief executive of Sweden's AP1 pension fund. | Photo: AP1/PR
BY RAFAELA LINDEBERG / BLOOMBERG

One of Sweden's biggest pension funds has arranged its inflation strategy around the Federal Reserve's view that price spikes will prove transitory, and says that, with a bit of hedging here and there, the approach has worked well.

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