Inflation to Impact Short End of Yield Curve: Nuveen's Nick

The video discusses the impact of the ongoing war on global markets, highlighting how risk assets have adjusted to the situation. It emphasizes the Federal Reserve's response to rising inflation expectations, leading to potential rate hikes. The discussion includes projections for the Fed funds rate and the implications of inflation on economic growth. The video also explores the possibility of a steeper yield curve and the potential for market opportunities, particularly in short-term Treasurys, as inflation expectations remain high.

How have markets primarily perceived the ongoing war?

• As a currency crisis

• As a growth issue

• As a geopolitical risk

• As an inflation event

What is the potential Fed funds rate by the end of the year according to some predictions?

• 4%

• 3%

• 2%

• 1.5%

What might cause the Fed to hike rates more than currently anticipated?

• A stable energy price

• A wage-price spiral

• A drop in employment data

• A decrease in durable goods prices

What could lead to a steeper yield curve according to the discussion?

• Long rates rising significantly

• Short rates coming down

• A decrease in inflation expectations

• An increase in oil prices

What is the expected inflation rate over the next two years?

• 2% per year

• 3% per year

• 5% per year

• 4% per year