Sébastien Page of T. Rowe Price said investors should prioritize hedging against inflation risk amid shifting global market dynamics.
This guidance comes as institutional investors grapple with the dual pressure of integrating artificial intelligence into business models while managing the eroding effects of persistent inflation on portfolio returns.
Page, who serves as the head of global multi-asset and chief investment officer at T. Rowe Price, appeared on CNBC’s Squawk Box program on May 13, 2026 [2]. During the broadcast, he said there are three [1] key trends currently facing the markets.
One primary focus of the discussion centered on the adoption of artificial intelligence. Page said AI is reshaping productivity and creating new investment opportunities across various sectors. The integration of these technologies is viewed as a critical driver of growth, though it requires a strategic approach to capital allocation.
Alongside AI, Page said inflation hedging is necessary. He said the current economic environment requires active management to protect purchasing power. This involves identifying assets that historically perform well during inflationary periods to mitigate potential losses in traditional fixed-income holdings.
The conversation also touched upon broader investment opportunities and the volatility associated with current market trends. Page said a diversified approach, combining growth-oriented AI plays with inflation-resistant assets, provides the most robust defense against macroeconomic instability.
Throughout the interview, Page said the intersection of technological disruption and monetary instability defines the current investment landscape. He said the goal for investors is to remain agile while keeping a close eye on the metrics that signal inflationary pressure.
“Investors should be hedging inflation risk right now”
The emphasis on inflation hedging by a major institutional CIO suggests that market leaders do not believe inflation has been fully tamed. By linking AI adoption with inflation risk, Page indicates that while technology provides a growth engine, the underlying macroeconomic environment remains volatile enough to require defensive positioning.
