Inflation Is a Clear and Present Danger to Fed, Says Tannuzzo

The video discusses the Federal Reserve's approach to rate hikes, focusing on the potential for 50 basis point increases in May and June. It examines the impact of these hikes on fixed income markets, liquidity, and credit spreads. The discussion also covers inflation expectations, the yield curve, and the possibility of a recession. The Fed's response to inflation and its effect on real yields are analyzed, highlighting the need for a balance between real yields and inflation expectations to maintain credibility.

What are the implications of the Federal Reserve's decision to front load rate increases?

How does the current liquidity situation in the treasury market affect investors?

What factors are contributing to the widening of credit spreads in the market?

In what ways does the current inflation environment differ from previous cycles?

What does a sustained inversion of the yield curve indicate about economic expectations?