Fed Is Saying What Market Already Knew: Quadratic Capital

The video discusses the market's reaction to the Fed's unexpected announcement of potential rate hikes, which were already priced into market expectations. It explores the impact on inflation hedges, such as commodities and gold, and the significant yield curve flattening. The discussion also covers the dynamics of front-end and back-end yields, and strategies for managing volatility through options and fixed income investments.

What was the market's reaction to the Fed's surprise announcement regarding interest rates?

How did the pricing of interest rate hikes change after the recent Fed meeting?

What does the speaker suggest about the current state of inflation hedges?

In what way does the speaker compare the current inflation situation to Brexit?

What is the speaker's perspective on interest rate volatility in the fixed income market?