Bond Route Eases After Yield Surge Triggers Market Havoc

The video discusses recent market movements, focusing on the impact across asset classes and the role of central banks. It examines changes in the yield curve, particularly in Europe and the US, and questions whether markets are testing central banks or reacting to potential overheating of the US economy. The discussion also critiques inflation models based on output gap analysis, highlighting their poor track record and uncertainty in measuring spare capacity.

What does the speaker imply about the relationship between the US economy and inflation?

What concerns does the speaker have regarding the predictions of inflation based on output gap analysis?