Nomura's Subbaraman Says Get Used to Higher Rates

The video discusses Mr. Powell's testimony and its implications for the US Treasury and interest rates, highlighting the potential for four rate hikes this year. It addresses inflation concerns and the need for timely policy responses to avoid negative growth impacts. The discussion also covers the US dollar's impact on global markets, particularly emerging markets, and the risks associated with credit markets and economic stability.

What is one of the main reasons for the potential rise in US 10-year Treasury yields according to the discussion?

• Decrease in fiscal stimulus

• Increase in global trade

• Upcoming fiscal stimulus

• Reduction in interest rates

What is a potential risk of waiting too long to respond to inflation pressures?

• Decreased economic growth

• Stronger currency value

• Increased market stability

• Lower interest rates

How has the US dollar reacted to the rise in bond yields so far?

• It has fluctuated unpredictably

• It has weakened considerably

• It has remained relatively stable

• It has significantly strengthened

What could be a consequence of the dollar appreciating and emerging markets weakening?

• Capital outflows and debt mismatches

• Improved credit market conditions

• Stable foreign currency debt

• Increased capital inflows

What is considered the 'Achilles heel' in the current market scenario?

• Credit markets

• Equity markets

• Real estate markets

• Commodity markets