What to Expect From U.S. Inflation Data

The video discusses the current state of US inflation and its impact on market volatility. It highlights the recent job growth and its influence on inflation expectations. The ongoing tug of war between the bond market and equities is examined, with a focus on how bond yields affect market momentum. The video predicts a gradual increase in bond yields due to Federal Reserve policies and tax plans, emphasizing the importance of the speed of yield changes. The potential spillover effects from the bond market to equities are also considered.

What recent economic indicator has contributed to increased inflation expectations in the US?

• Rise in US job growth

• Decrease in consumer spending

• Increase in oil prices

• Drop in housing prices

What is the main concern for the equity market in relation to bond yields?

• The decrease in bond yields

• The speed at which bond yields rise

• The level of bond yields

• The stability of bond yields

What is the expected trend for long bond yields over the next 12 months?

• Remain stable at 2.5%

• Decrease to 2%

• Fluctuate between 2% and 3%

• Increase towards 3.25%

How might the Federal Reserve's actions influence bond yields?

• By increasing the budget deficit

• By managing expectations gradually

• By decreasing the money supply

• By increasing interest rates rapidly

What could be a potential consequence of a rapid increase in bond yields?

• Stability in the equity markets

• A decrease in inflation expectations

• A scare in the market

• An increase in consumer confidence