Komal Sri-Kumar Says Don't Expect a Pick Up in Inflation

The video discusses the current state of inflation, noting that despite wage increases, inflation is not picking up due to disinflationary factors. It highlights the market's reaction to core CPI data and emphasizes the importance of looking at trends over several months rather than isolated data points. The discussion shifts to bond yields, suggesting that risks do not stem from inflation but from government policies, such as the impact of U.S. Treasury Secretary Steve Mnuchin's comments on the dollar and uncertainties surrounding trade agreements like NAFTA.

What role does government policy play in influencing bond yields according to the text?

What potential impact could the cancellation of NAFTA have on US bond yields?