Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (NYSEARCA:VTIP) This creates a nuanced environment for TIPS. Inflation is neither accelerating rapidly nor collapsing, creating a balanced backdrop. The Fed's recent easing cycle has brought the federal funds rate down to 3.75% after four months of cuts, compressing nominal Treasury yields. That easing supports TIPS valuations by making the inflation protection feature more attractive relative to traditional bonds, even as moderate inf ...